For Building Contractors, Doubling the Size of an Office Building

question 163

Multiple Choice

For building contractors, doubling the size of an office building does not require double the inputs because there are common walls.This is an example of

• A)increasing marginal product
• B)diminishing marginal returns
• C)economies of scale
• D)diseconomies of scale
• E)constant returns to scale

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Definitions:

Eli Whitney

An American inventor best known for inventing the cotton gin, a device that revolutionized the cotton industry by greatly facilitating the removal of seeds from cotton fibers.

Farm Worker

Farm workers are individuals employed in the agricultural sector, focusing on the cultivation and harvesting of crops as well as the raising of animals.

Productivity

The measure of the efficiency of production, often evaluated as the ratio of outputs to inputs in a given time period.

Farm Price Supports

Government subsidies designed to maintain the income of farmers by stabilizing the prices of agricultural products.