Increasing Returns to Scale in Production Means

question 110

Multiple Choice

Increasing returns to scale in production means:

• A) more than 10% as much of all inputs are required to increase output 10%.
• B) less than twice as much of all inputs are required to double output.
• C) more than twice as much of only one input is required to double output.
• D) isoquants must be linear.

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Definitions:

Price Points

Specific prices at which goods or services are marketed to cater to different segments of consumers or to trigger purchase decisions.

Market Segments

Distinct groups within a broader market that have shared characteristics, needs, or preferences, targeted differently by marketers.

Break-even Chart

A graphical representation showing the point at which total costs and total revenues are equal, indicating no net loss or gain.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.