Suppose That a Firm,operating Efficiently,doubles the Size of Its Operations

question 50

Multiple Choice

Suppose that a firm,operating efficiently,doubles the size of its operations and discovers that,as a result,its average cost of production has increased.What does this imply?

• A)Decreasing returns to scale are present.
• B)Increasing returns to scale are present.
• C)Constant returns to scale are present.
• D)No conclusion about returns to scale can be made.

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Definitions:

Culture

The shared values, beliefs, norms, and practices that characterize an organization or society.

Workplace Safety

Practices, policies, and procedures designed to protect employees from risks and hazards associated with their working environment.

Job Satisfaction

The level of fulfillment or contentment employees feel regarding their jobs, including aspects of their work environment, role, and relationships with coworkers.

Job Insecurity

The fear or risk of losing one's job without the prospect of finding another of equal value.