Assume a Firm Is Using 10 Units of Labour and 10

question 29

Multiple Choice

Assume a firm is using 10 units of labour and 10 units of capital and is producing 10 units of output per hour.Now both inputs are doubled,resulting in output rising to 18 units per hour.The firm is experiencing

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

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Definitions:

Comparative Law

The study of the legal systems of different states.

Legal Systems

Comprehensive frameworks of laws, regulations, institutions, and procedures that guide the administration of justice in a country or region.

States

Politically defined regions or territories that make up a country, each with its own government and administrative powers within the context of a federal system.

Multilateral Free Trade Agreement

An agreement between three or more countries to reduce trade barriers and tariffs to encourage trade and economic cooperation among them.