A constant returns to scale production function means that if all inputs are halved then output will
a. double.
b. increase, but not double.
c. fall by half.
d. fall, but not by half.
e. none of the above.
C
You might also like to view...
Michigan Radio is the state's most listened-to public radio service, attracting approximately 400,000 listeners each week. How would Michigan public radio best be classified?
A) as a private good B) as a common resource C) as a natural monopoly D) as a public good
A . Why is the Fed interested in controlling both the interest rate and the size of the money supply? b. In the grand scheme of things, does it really matter which target option the Fed chooses? That is, is there a preferred target option?
A factor increasing the popularity of monetarism in the late 1970s was the
a. ease with which the Fed controlled the money supply. b. excellent performance of the economy in the 1970s. c. the fear of budget deficits and growing federal debt. d. the predictable behavior of velocity until about 1980.
Total fixed cost (TFC):
A. varies directly with total output. B. falls continuously as total output expands. C. does not change as total output increases or decreases. D. falls as the firm expands output from zero, but eventually rises.