In the Long Run, Decreasing Returns to Scale Are Likely

question 68

Multiple Choice

In the long run, decreasing returns to scale are likely to be caused by

• A) decreasing costs.
• B) diminishing returns to the variable factor.
• C) management diseconomies.
• D) increasing specialization.
• E) a decrease in factor prices.

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Definitions:

Electromagnetic Spectrum

The range of all types of electromagnetic radiation, which includes, among others, radio waves, microwaves, infrared, visible light, ultraviolet, X-rays, and gamma rays.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to the dense concentration of cones.

Periphery

The outer limits or edge of an area or object, often used to describe locations that are marginal or less central.

Thickness

A measurement of an object's dimension from one side to another, indicating how wide or deep the object is.