Increasing Returns to Scale Occur When a 50% Increase in All

question 92

Multiple Choice

Increasing returns to scale occur when a 50% increase in all inputs

• A) increases output by 50%.
• B) increases output by more than 50%.
• C) increases input prices by more than 50%.
• D) increases output by less than 50%.
• E) decreases output by more than 50%.

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Definitions:

Market

A venue or mechanism where buyers and sellers engage in the exchange of goods, services, or financial instruments.

LIFO Inventory

An inventory valuation method where the last items added to inventory are the first ones to be used or sold.

Merchandise Inventory

Goods that a company holds for the purpose of selling them to customers, often a significant asset on the balance sheet for retailers.