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.

Understand the concept and types of international business, including franchising, direct investment, and joint ventures.

Recognize the reasons why businesses expand into international markets.

Identify the various strategies for entering international markets, including importing, exporting, global sourcing, and licensing.

Appreciate the role of cultural awareness and global management skills in international business.

---

Definitions:

Third Variable Problem

A challenge in research where an unmeasured, external factor causes the correlation between two variables, complicating causal interpretations.

Directionality Problem

In research, the issue of not knowing whether variable A causes variable B or vice versa.

Correlational Studies

Correlational studies are research methods that examine the relationship between two or more variables to determine if a statistically significant association exists, without inferring cause and effect.

Correlation

A statistical measure that indicates the extent to which two variables fluctuate together, without necessarily implying causation.