The Production Function Feature Called "Constant Returns to Scale" Means

question 49

Multiple Choice

The production function feature called "constant returns to scale" means that if we:

• A) multiply capital by z₁ and labor by z₂, we multiply output by z₃.
• B) increase capital and labor by 10 percent each, we increase output by 10 percent.
• C) increase capital and labor by 5 percent each, we increase output by 10 percent.
• D) increase capital by 10 percent and increase labor by 5 percent, we increase output by 7.5 percent.

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Definitions:

Refractory Period

The period immediately following stimulation during which a nerve or muscle is unresponsive to further stimulation.

Sexual Response Cycle

A sequence of physical and emotional phases that occur when an individual becomes sexually aroused and participates in sexually stimulating activities, including phases such as arousal, plateau, orgasm, and resolution.

Muscular Contractions

The tightening and shortening of a muscle or muscle group, which can be voluntary or involuntary.

Orgasm

A peak of sexual arousal characterized by intense pleasure and release of sexual tension, often accompanied by involuntary, rhythmic contractions of the genital muscles.