When a One-Unit Increase in Input Increases Output More Than

question 70

Multiple Choice

When a one-unit increase in input increases output more than the previous unit of input, we say that there are

• A)increasing returns.
• B)increasing costs.
• C)diseconomies of scale.
• D)decreasing returns.
• E)constant returns to scale.

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Definitions:

Hidden Cost

Expenses not immediately apparent or obvious when purchasing or investing in something, often becoming clear later on.

Product Quality

refers to the characteristics of a product that determine its ability to satisfy stated or implied customer needs.

Service Quality

Refers to the measurement of how well a delivered service matches the customer's expectations.

External Forces

Events, conditions, or factors outside an organization that can affect its performance and operational success.