Assume a Firm Is Using 10 Units of Capital and 10

question 96

Multiple Choice

Assume a firm is using 10 units of capital and 10 units of labour to produce 10 widgets per hour.By doubling both inputs the result is a doubling of output.This firm is experiencing

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

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Definitions:

Heuristics

Heuristics are cognitive shortcuts or rules of thumb that simplify decision making, often used when facing complex problems or incomplete information.

Algorithms

A set of rules or instructions typically used in computer programming and mathematics to perform calculations or problem-solving operations.

Phonemes

The basic distinctive units of sound in a language that distinguish one word from another, for example, the sounds /p/, /b/, /d/, and /t/ in the English words "pad", "bat", "bad", and "tap".

Morphemes

The smallest grammatical units in a language that carry meaning; they can be words or parts of words (like suffixes or prefixes).