in calculating the payback period where new equipment is replacing old equipment, any salvage value to be received on disposal of the old equipment should be deducted from the cost of the new equipment. group startstrue or false

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01-12-2022
Business

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in calculating the payback period where new equipment is replacing old equipment, any salvage value to be received on disposal of the old equipment should be deducted from the cost of the new equipment. group startstrue or false

Sagot :

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-12-05T22:12:46-05:00

The answer is false. When a company's inputs, such as capital and labour, expand at the same rate as its outputs. Returns to scale are measurements over the long term.

In other words, as inputs (such as labour and capital) increase, so do outputs in the same proportion. If the production components are doubled, the output will likewise outputs exactly double, which is an illustration of consistent returns to scale. By multiplying each input in the function by a positive constant, (t > 0), and then checking to see if the entire production function is multiplied by a number, it is simple to measurements whether a production function has growing, decreasing, or constant returns to scale.

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