If a Production Function Has the Property Called __________, Then

question 2

Short Answer

If a production function has the property called __________, then doubling all inputs causes the amount of output to double as well.

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Definitions:

Equipment

Tangible assets used in operations, such as machinery or office equipment, not intended for sale.

Land

A real estate asset representing a parcel of earth's surface, its resources, and all its permanent fixtures.

Net Sales

Total sales revenue minus returns, discounts, and allowances for goods that are damaged or missing, defining a company's net sales.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from total sales revenue.