In an Increasing-Cost Industry, Expansion of Output

question 19

Multiple Choice

In an increasing-cost industry, expansion of output:

• A) causes input prices to rise as demand for them grows.
• B) leaves input prices constant as input demand grows.
• C) causes economies of scale to occur.
• D) occurs under conditions of increasing returns to scale.
• E) occurs without diminishing marginal product.

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Definitions:

Employee's Control

The degree of influence and authority employees have over their work environment and tasks.

Ineffective Handling

Poor management or control of a situation, leading to unsuccessful outcomes or the inability to achieve desired results.

Legal Action

The process of taking disputes to a law court or undergoing legal proceedings related to employment issues.

Evaluate Performance

The systematic assessment of an employee's job performance, skills, and productivity over a specific period.