If a Firm Doubles Its Use of All Inputs and Output

question 147

Multiple Choice

If a firm doubles its use of all inputs and output more than doubles, the firm is experiencing:

• A) constant returns to scale
• B) decreasing returns to scale
• C) increasing marginal returns to a fixed factor
• D) increasing returns to scale

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Definitions:

Securities Regulator

A governmental or non-governmental organisation charged with regulating and overseeing the securities industry, including markets, brokers, and public companies to protect investors.

Interim Financial Statements

Financial reports that are prepared and presented for a period shorter than a fiscal year, commonly on a quarterly or semi-annual basis, to provide timely financial information.

Comprehensive Income

The total change in equity for a reporting period other than transactions from owners, including all revenues, expenses, gains, and losses.

IAS 34

International Accounting Standard 34, which deals with interim financial reporting, providing guidance on financial statements prepared for part of the year.