If There Are Constant Returns to Scale,the Production Function Can

question 152

Multiple Choice

If there are constant returns to scale,the production function can be written as

• A)xY = 2xAF(L,K,H,N).
• B)Y/L = A F(xL,xK,xH,xN).
• C)Y/L = A F( 1,K/L,H/L,N/L).
• D)L = AF(Y,K,H,N).

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Definitions:

Tax Rate

The share of financial gain upon which the government imposes taxes on entities or individuals.

MACRS Depreciation

A method of depreciation in the United States that allows for accelerated depreciation of assets under the tax code.

Incremental Cash Flow

is the additional operating cash flow that an organization receives from taking on a new project.