If the Percentage Increase in a Firm's Output Is the Same

question 27

Multiple Choice

If the percentage increase in a firm's output is the same as the percentage increase in all of its inputs, then:

• A) diminishing marginal returns have begun.
• B) the firm is employing the least cost combination of inputs.
• C) returns to scale are constant.
• D) returns to scale are decreasing.
• E) returns to scale are increasing.

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Definitions:

Operating Load

The average workload or stress placed on a machine or system during normal operation.

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In graph theory, points that, if removed, increase the number of connected components, indicating critical points in structural or network designs.

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A specific truck combination consisting of a tractor unit connected to two trailers linked by a dolly, arranged in a format resembling the letter 'A'.

Electrical Current Load

The total current drawn by all electrical devices in a circuit or system.