Scale Elasticity Refers to Changes In

question 65

Multiple Choice

Scale elasticity refers to changes in:

• A)output due to changes in cost.
• B)cost due to changes in output.
• C)output due to changes in scale.
• D)cost due to changes in scale.

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Definitions:

Inputs

Resources used in the production process, including labor, capital, materials, and energy, to create output or goods and services.

Output

The amount of goods or services produced by a business, sector, or economy over a specific period.

Explicit Costs

Direct, out-of-pocket payments for costs of production, such as wages, rent, and materials.

Entrepreneur's Potential Earnings

The forecasted income an entrepreneur can expect from their business venture, taking into account risks and opportunities.