Assume a Firm Is Using 10 Units of Capital and 10

question 11

Multiple Choice

Assume a firm is using 10 units of capital and 10 units of labour and is producing 10 widgets per hour. Now it doubles both inputs, resulting in output of 30 widgets per hour. This firm is experiencing

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

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Definitions:

Invisible

Unable to be seen; not visible to the eye.

Ganglion Cells

Specialized neurons located in the retina that play a crucial role in transmitting visual information from photoreceptor cells to the brain.

Optic Nerve

The optic nerve is a bundled set of nerve fibers that transmits visual information from the retina to the brain, playing a critical role in vision.

Place Theory

A theory in hearing that suggests different areas of the cochlea are activated by different frequencies of sound, contributing to our perception of pitch.