Assume the firm instead decides to quadruple the levels of both inputs (relative to the initial levels). With these new levels of inputs, the production function exhibits Choose one: A. constant returns to scale. B. increasing returns to scale. C. decreasing returns to scale. D. increasing returns for low levels of inputs and decreasing returns for high levels of inputs.

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.