Figure 6.4.1 -In a Production Process, All Inputs Are Increased by 10%;

question 115

Multiple Choice

Figure 6.4.1
-In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences:

• A) decreasing returns to scale.
• B) constant returns to scale.
• C) increasing returns to scale.
• D) negative returns to scale.

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Definitions:

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Propositions

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The art of effective or persuasive speaking or writing, especially the use of figures of speech and other compositional techniques.

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A logical and coherent presentation of ideas, supported by evidence, leading to a convincing conclusion.