If Your Firm's Production Function Has Constant Returns to Scale,and

question 76

Multiple Choice

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will

• A)not change.
• B)increase but not double.
• C)double.
• D)more than double.

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Definitions:

Sample Size

The number of observations or data points that constitute a sample drawn from a population for statistical analysis.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, showing how much each value in the set varies from the mean.

Binomial Populations

Populations for which the outcomes can be classified into two categories (success/failure) and the number of successes in a set number of trials can be predicted.

SRS

Stands for Simple Random Sample, a sampling method where each member of the population has an equal chance of being selected.