If a Production Function Exhibits Increasing Returns to Scale, a 10

question 53

Multiple Choice

If a production function exhibits increasing returns to scale, a 10% increase in:

• A)input- use results in a less than 10% increase.
• B)the LMC being above LAC.
• C)output requires a more than 10% increase in the input- use.
• D)output results in a less than 10% increase in the input- use.

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Definitions:

ANS

Short for Autonomic Nervous System, which controls involuntary body functions such as heartbeat, digestion, and breathing.

Fight-or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival, initiating rapid bodily changes for emergency action.

Sympathetic

Pertaining to the part of the autonomic nervous system that typically prepares the body for action by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

Parasympathetic

Part of the autonomic nervous system responsible for conserving energy and restoring the body to a state of calm.