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

question 14

Multiple Choice

If the percentage increase in a firm's output is higher than 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 increasing.
• E) returns to scale are decreasing.

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Definitions:

Stimulus Hierarchy

An ordered list of stimuli ranging from least to most likely to elicit a response, used in desensitization therapies and other psychological treatments.

Systematic Desensitization

Systematic desensitization is a therapeutic technique used to gradually expose individuals to their phobias or fears while teaching them relaxation techniques, aiming to reduce anxiety responses.

Learn How to Relax

A process or practice of becoming less tense, anxious, or stressed, often involving techniques such as deep breathing, meditation, or yoga.

Decatastrophize Technique

A cognitive-behavioral therapy technique aimed at reducing anxiety by challenging and modifying catastrophic thoughts.