Decreasing Returns to Scale May Occur Because Increasing the Amount

question 54

Multiple Choice

Decreasing returns to scale may occur because increasing the amount of inputs used

• A)increases specialization.
• B)always increases the amount of output produced.
• C)may cause coordination difficulties.
• D)increases efficiency.

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Definitions:

Unemployment

The state of being without a job despite actively seeking work, reflected as a percentage of the labor force.

National Standard

Officially recognized guidelines or specifications set by a country, covering various aspects such as quality, safety, and efficiency.

Technological Improvements

Enhancements or advancements in technology that increase productivity or efficiency in processes, products, or services.

Real Income

An individual's income adjusted for inflation, reflecting the actual purchasing power of the income.