Increasing Returns Would Be a Situation Where a Firm Increases

question 39

Multiple Choice

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

• A)10 percent and its output increases by 5 percent.
• B)5 percent and its output increase by 10 percent.
• C)8 percent and its output increases by 8 percent.
• D)12 percent and its output increases by 10 percent.

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Definitions:

Securitization Entity

A structured entity created to pool various financial assets and then sell them to investors, converting illiquid assets into liquid ones.

Collateralized Borrowing

A loan secured by pledging an asset as collateral, ensuring the lender can seize the asset if the borrower defaults.

Significant Benefits

These refer to notable advantages or positive impacts, often seen in the context of employee compensation, strategic decisions, or investments.

Mortgage Portfolio

A collection of mortgage loans held by a financial institution or investor that can generate income through interest payments made by the borrowers.