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:

Urine Formation

The physiological process involving filtration, reabsorption, and secretion, through which the kidneys produce urine.

Filtrate

The fluid that has passed through a filter, which in the biological context, usually refers to the liquid that has passed through the filtering units of the kidney.

Uniform Partnership Act

A standardized set of laws enacted to regulate the operation of partnerships within the United States, aiming to harmonize the law of business partnerships across jurisdictions.

Uniform Business Act

The Uniform Business Act is a standardized set of laws designed to regulate business and commercial transactions across different jurisdictions in a consistent manner.