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.

---

Definitions:

Demanding Tone

A manner of communication that is authoritative and insists on immediate attention or compliance.

Compliance

The act of adhering to established guidelines, standards, or laws.

Routine Request

A standardized or commonly made inquiry or appeal for information, services, or action in the course of regular operations or transactions.

Complex Requests

Inquiries or demands that involve multiple steps, conditions, or elements, often requiring careful consideration and planning to execute.