If a Production Function Has Constant Returns to Scale,output Can

question 154

Multiple Choice

If a production function has constant returns to scale,output can be doubled if

• A)labor alone doubles.
• B)all inputs but labor double.
• C)all of the inputs double.
• D)None of the above is correct.

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Definitions:

Discount

A reduction from the full amount or value of an item or security, often applied to bonds sold below their face value or to promote sales of products.

Coupon Interest Rate

The percentage of a bond's value that is paid out in interest to the bondholder annually, identical to the coupon rate.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, considering all interest payments and the repayment of principal.

Par Value

The face value or nominal value of a bond, share of stock, or other financial instrument, usually representing its value upon issuance.