Assume a Firm Is Using 10 Units of Labour and 10

question 85

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

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Definitions:

Hoarding

The compulsion to collect and keep large amounts of items, often leading to cluttered living spaces and difficulty discarding items, regardless of their actual value.

Global Work Experience

Professional experience gained through working in diverse cultural and geographic locations worldwide, contributing to a broader understanding of global business dynamics.

Cultures

The shared beliefs, values, norms, and practices that define a group of people or an organization, influencing behavior and expectations.

Hedgehog Concept

A strategic framework suggesting that success is achieved by focusing deeply on the intersection of personal passion, what one can be the best at, and what drives the economic engine.