If a Firm Cuts Inputs in Half, and Output Falls

question 72

Multiple Choice

If a firm cuts inputs in half, and output falls by more than half, then there are

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)constant returns to scale.
• D)decreasing marginal returns.

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Definitions:

Conference Rooms

Designated spaces in an office or facility set aside for meetings, seminars, or discussions.

Confidence Interval

An interval of values, obtained from data sampled, which is probable to encompass the value of an unspecified population parameter.

Confidence Level

The probability, expressed as a percentage, that a statistical interval will contain the true parameter value; commonly used in interval estimation.

Population Standard Deviation

A measure of the dispersion of all members in a population from the mean, indicating how spread out the values are.