Assume a Firm Is Using 10 Units of Capital and 10

question 96

Multiple Choice

Assume a firm is using 10 units of capital and 10 units of labour to produce 10 widgets per hour. By doubling both inputs the result is a doubling of output. This firm is experiencing

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

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Definitions:

Ethnic Backgrounds

Refers to an individual's cultural heritage, including the customs, traditions, and values inherited from one's forebears based on ethnicity.

Socioeconomic Backgrounds

The social and economic circumstances in which individuals are raised, which often influence their future opportunities, attitudes, and behaviors.

Longer Life

Refers to an increase in the average lifespan of a population, attributed to factors such as improved healthcare, nutrition, and living conditions.

Lower Classes

Social groupings at the lower end of a socioeconomic hierarchy, often characterized by limited access to resources.