Assume a Firm Is Using 10 Units of Labour and 10

question 85

Multiple Choice

Assume a firm is using 10 units of labour and 10 units of capital and is producing 10 units of output per hour. Now both inputs are doubled, resulting in output rising to 18 units per hour. The firm is experiencing

• A) decreasing costs.
• B) decreasing returns to scale.
• C) increasing returns to scale.
• D) economies of scale.
• E) constant returns to scale.

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Definitions:

Poverty

A condition where individuals or communities lack the financial resources to meet basic needs for healthy living, including food, shelter, education, and access to healthcare.

Textbook

A book containing detailed information on a specific subject, traditionally used for study in educational settings.

Gilligan

Refers to Carol Gilligan, a psychologist known for her work in moral development and ethics, emphasizing the differences in how individuals understand moral problems.

Moral Orientations

The underlying attitudes, beliefs, or perspectives that guide an individual's decisions and judgments about what is right and wrong.