If Input Prices Are Constant, a Firm with Increasing Returns

question 107

Multiple Choice

If input prices are constant, a firm with increasing returns to scale can expect:

• A) costs to double as output doubles.
• B) costs to more than double as output doubles.
• C) costs to go up less than double as output doubles.
• D) to hire more and more labor for a given amount of capital, since marginal product increases.
• E) to never reach the point where the marginal product of labor is equal to the wage.

Calculate the weight of individual stocks within a portfolio.

Understand the relationship between risk-free rate, market rate, and the expected return of an investment.

Comprehend the concept of beta and its use in determining the risk level of stocks compared to the market.

Identify how different economic states affect portfolio returns and risk.

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Definitions:

Deviance

Behaviors or actions that violate social norms, including formally enacted rules as well as informal understandings of acceptable behavior.

Rate of Incarceration

The number of individuals within a population who are confined in a prison or jail per 100,000 of the population.

Alternatives

Options or choices made available to individuals or groups that offer different means of achieving a desired outcome or solution.

Prisons

Institutions designed to detain individuals who have been convicted of crimes, intended for punishment, rehabilitation, or both.