If the Labor Required Per Unit of Output Falls as Output

question 26

Multiple Choice

If the labor required per unit of output falls as output increases (such as is specified in the Krugman model) , this can be thought of as a situation

• A) of constant returns to scale.
• B) of decreasing returns to scale.
• C) of increasing returns to scale.
• D) that is exactly the same situation as was the case in Ricardo's analysis.

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Definitions:

Ocular Lens

A transparent structure in the eye that, along with the cornea, helps to refract light to be focused on the retina.

Objective Lens

The lens in a microscope closest to the specimen that helps to magnify the image of the object being observed.

Objective Lens

A critical component in microscopes that gathers light from the specimen and focuses it to create a real image.

Lumen

The interior space or cavity of a hollow organ or structure such as a blood vessel or intestine.