If a Firm's Output Less Than Doubles When All Inputs

question 15

Multiple Choice

If a firm's output less than doubles when all inputs are doubled,production is said to occur under conditions of

• A)constant returns to scale
• B)increasing returns to scale.
• C)imperfect competition.
• D)decreasing returns to scale.
• E)intra- industry equilibrium.

---

Definitions:

Expected Payoff

The anticipated return or outcome of an investment, decision, or action, considering all possible results weighted by their probabilities.

Expected Opportunity Loss

The anticipated loss in value for choosing an option that is not the best, quantified as the difference between the best expected outcome and the expected outcome of the chosen option.

Expected Monetary Value

The weighted average of all possible outcomes of a decision, where each outcome is weighted by its probability of occurrence.

Perfect Information

A theoretical situation in which all participants have access to all relevant information to make a decision.