Which of the following statements is TRUE?
A) A Cobb-Douglas production function can have different returns to scale at different output levels.
B) It is impossible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level.
C) It is possible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level.
D) None of the above.
C
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Personal consumption expenditures
a. represent approximately two-thirds of GDP b. are equal to personal income minus individual taxes c. include durable good purchases but not nondurable good purchases d. do not include any intangible consumption items e. include all goods and services bought by the government
Laura says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than the present value of $700 to be received two years from today if the interest rate is 3 percent. Cassie says that $700 saved for one year at 6 percent interest has a smaller future value than $700 saved for two years at 3 percent interest
a. Both Laura and Cassie are correct. b. Both Laura and Cassie are incorrect. c. Only Laura is correct. d. Only Cassie is correct.