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Nostrana [21]
3 years ago
12

In a particular production process the quantities of all inputs used double and then the quantity of output increases by less th

an double. This means that
a. no mathematical representation of the relevant production function can be formulated.

b. the relevant production function has the increasing returns property.

c. the relevant production function has the diminishing returns property.

d. relevant production function has the constant returns property.
Business
1 answer:
Zolol [24]3 years ago
4 0

ANSWER

C. DIMINISHING Returns to property/ scale

EXPLANATION

Returns to Scale is a production concept used in Long Run (when all factors are variable i.e changeable)

It denotes relative change in output when all inputs change in same proportion .

Increasing Returns to Scale : Proportionate Increase in Output > Proportionate Increase in all inputs .

Constant Returns to Scale : Proportionate Increase in Output = Proportionate Increase in all Inputs .

Negative Returns to Scale : Proportionate Increase in Output < Proportionate Increase in all Inputs .

So : If all inputs are doubled (X2) - If output increases equal i.e double (X2) , Constant Returns to Scale . If output increases more i.e triple (X3) , Increasing Returns to scale . If output increases less i.e (1.5X) , Decreasing Returns to Scale.

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In order to help the student expand his/her knowledge I will help answer the question. This in hope that the student will get a piece of knowledge that will help him/her through his/her homework or future tests.

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Which of the following statements is correct regarding variable costing and absorption costing income statements for a company t
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Answer:<em> Option (A) is correct.</em>

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LO 1.3The Certified Management Accountant (CMA) certification:
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I hope my answer helps you.

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