Examlex
The given diagram represents a generalized reaction between an amino acid-AMP complex and a tRNA molecule. Which of the following statements is true if the -R group is a hydrogen atom (-H) in one reaction and a methyl group (-CH3) in another reaction?
Increasing Returns to Scale
Occurs when an increase in all inputs by a certain percentage causes a more than proportional increase in output.
Decreasing Returns to Scale
Decreasing returns to scale occur when an increase in all inputs leads to a less than proportional increase in output, showing that the firm becomes less efficient as it scales up production.
Increasing Opportunity Costs
A situation where the cost of forgoing the next best alternative increases as more resources are devoted to an activity.
Scale Reduction
The process of decreasing the size or output level of operations in a business or economic system.
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