In a Particular Production Process,if the Quantities of All Inputs

question 9

Multiple Choice

In a particular production process,if the quantities of all inputs used are increased by 60%,then the quantity of output increases by 60% as well.This means that

• A)the production process cannot be enhanced by technological advances.
• B)no mathematical representation of the relevant production function can be formulated.
• C)the relevant production function has the limits-to-growth property.
• D)the relevant production function has constant-returns-to-scale.

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Definitions:

Tax Deductions

Expenses that can be subtracted from gross income to reduce the total amount of income subject to taxation, effectively lowering the overall tax liability.

Diminishing Value

A reduction in the worth of an asset over time, often due to wear and tear or obsolescence.

After-tax Cash Inflow

The net amount of cash generated from an investment after deducting all applicable taxes.

Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the government as tax.