You sell cupcakes. One day you double the time you spend and double all your inputs, and make twice as many cupcakes. Your cupcake production function has
a. decreasing returns to scale.
b. zero returns to scale.
c. constant returns to scale.
d. increasing returns to scale.
c
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If a dollar today will likely have more purchasing power because of inflation, then a dollar a year from now ________ a dollar today
A) will be more valuable than B) will have the same value as C) will be less valuable than D) may be more valuable or less valuable than
A movement upward along an upward sloping Engel curve corresponds to
A) upward sloping indifference curves. B) crossing indifference curves. C) a rotation in the budget constraint. D) a parallel shift in the budget constraint.
Crowding out is when government borrowing and spending result in __________ interest rates, which reduces business investment and household consumption.
a. flat b. higher c. lower d. reduced
The principal reason why Thailand, Indonesia, and South Korea feared the effects of appreciation of the U.S. dollar in 1995-1997 was that
a. it would increase exports from these countries and worsen Japanese. b. it would increase exports from these countries and worsen unemployment. c. it would decrease exports from these countries since their currencies were tied to the dollar. d. it would decrease imports to these countries since their currencies were tied to the dollar.