Scenario 25-1

question 321

Multiple Choice

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) .
-Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

• A) Y = 4L + 2K + 3H + N
• B) Y = L + K + H + N)/4
• C) Y =2
• D) Y = 4

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Definitions:

Financing

The act of providing funds for business activities, making purchases or investing, often involving loans, equity, or other forms of financial instruments.

High-risk Ventures

Business projects or investments that carry a significant chance of failing but may offer high rewards if successful.

Rights Offering

A method companies use to raise capital, which gives existing shareholders the right to purchase additional shares at a discounted price before the public.

Ownership Position

Ownership position refers to the holding of equity in a company or property, granting the holder rights to profits, voting, and potentially influencing management decisions.