If a Firm Triples Inputs and Produces Three Times the Output

question 94

Multiple Choice

If a firm triples inputs and produces three times the output, then there are

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

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Definitions:

Income

The financial gain earned by an individual or an entity, usually categorized as earned or unearned income.

Step Acquisition

The process where a company gradually increases its investment in another company over time, potentially gaining control or significant influence.

Consolidated Income Statement

A Consolidated Income Statement is a financial report that combines the income, expenses, and profits of a parent company and its subsidiaries, showing the overall performance as a single entity.