If Output Is Produced with Two Factors of Production and with Increasing

question 30

Multiple Choice

If output is produced with two factors of production and with increasing returns to scale,

• A)there cannot be diminishing marginal rate of substitution.
• B)all inputs must have increasing marginal products.
• C)on a graph of production isoquants, moving along a ray from the origin, output more than doubles as the distance from the origin doubles.
• D)the marginal product of at least one input must be increasing.
• E)all inputs must have decreasing marginal products.

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Definitions:

General Journal Entry

A record in the general journal that represents a transaction and shows the accounts and amounts debited and credited.

F.O.B Shipping Point

F.O.B Shipping Point (Free on Board Shipping Point) is a shipping term indicating that the buyer assumes ownership and risk of the goods being shipped as soon as they leave the seller's premises.

Perpetual Inventory Method

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

General Journal Entry

A general journal entry is a record in the general journal that is used to document business transactions according to the double-entry bookkeeping system.