If a Firm Increases All of Its Inputs by 10

question 291

Multiple Choice

If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then

• A)it is encountering diseconomies of scale.
• B)it is encountering economies of scale.
• C)the law of diminishing returns is taking hold.
• D)the firm's long-run ATC curve will be rising.

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Definitions:

Ambivalent

Mixed feelings or contradictory attitudes towards something or someone.

Avoidant

Relating to or indicative of a personality trait or behavior characterized by a tendency to withdraw from or avoid emotional intimacy.

Secure

Characterized by safety or the state of being free from danger or threat, often used in the context of cyber security or emotional stability.

Psychosocial Development

A theory that proposes that an individual’s psychological development occurs in a series of predetermined stages, emphasizing the effects of social relationships on psychological development.