If a Production Technology Exhibits Decreasing Returns to Scale,which of the Following

question 63

Multiple Choice

If a production technology exhibits decreasing returns to scale,which of the following will occur when all inputs are increased by 10%?

• A)output will decrease by 10%
• B)output will increase by 10%
• C)output will increase by more than 10%
• D)output will increase by less than 10%

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Definitions:

Bonus Pay Plans

Compensation strategies that provide employees with additional financial rewards based on performance achievements, company profits, or other criteria warranting a bonus.

Continuous Payments

A method of payment where charges are made at regular intervals without interruption for services or goods received over time.

Performance Targets

Specific objectives set for individuals or teams to achieve, often quantifiable, used to measure success or progress towards strategic goals.

Society for Human Resource Management

A professional association dedicated to the advancement of human resource professionals, offering education, certification, and advocacy for HR practices.