Assume That There Are Decreasing Returns to Capital, Decreasing Returns

question 15

Multiple Choice

Assume that there are decreasing returns to capital, decreasing returns to labour, and constant returns to scale. Now suppose that both capital and labour increase by 10%. Given this information, we know that output (Y) will:

• A) not change.
• B) increase by 10%.
• C) increase by more than 10%.
• D) increase by less than 20% but more than 10%.
• E) increase by less than 10%.

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Definitions:

Preserve Time

Refers to the maintenance and protection of time as a valuable resource, ensuring it is utilized effectively and not wasted.

Avoid Interruptions

Strategies or practices aimed at minimizing disruptions in order to maintain focus and increase productivity.

Learning To Say No

The skill of setting personal or professional boundaries, making it possible to prioritize tasks and manage time effectively.

Scenario Planning

Scenario planning is a strategic planning method used to make flexible long-term plans based on different possible future conditions.