If Bread Is Produced by Using a Constant Returns to Scale

question 154

Multiple Choice

If bread is produced by using a constant returns to scale production function, then if the:

• A) number of workers is doubled, twice as much bread will be produced.
• B) amount of equipment is doubled, twice as much bread will be produced.
• C) amounts of equipment and workers are both doubled, twice as much bread will be produced.
• D) amounts of equipment and workers are both doubled, four times as much bread will be produced.

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Definitions:

Credit Terms

The conditions under which credit will be extended to a customer, including the repayment time frame and any interest or fees that apply.

Periodic System

An inventory valuation method where physical inventory counts are done periodically to determine the cost of goods sold and the ending inventory level.

Physical Count

Physical count involves manually counting all inventory items in a business at a specific time to verify quantities and ensure accuracy in records.