An Example of Decreasing Returns to Scale Is When Capital

question 70

Multiple Choice

An example of decreasing returns to scale is when capital and labour inputs:

• A)both increase 10 percent and output increases 5 percent.
• B)both increase 10 percent and output increases 10 percent.
• C)both increase 5 percent and output increases 10 percent.
• D)do not change and output increases 5 percent.

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Definitions:

Inferior Olive

A structure in the brainstem involved in motor coordination and learning by sending signals to the cerebellum.

Cerebellum

A major structure of the hindbrain that plays an essential role in motor control, coordination, precision, and timing of movements.

Motor System

The component of the central and peripheral nervous system that is involved in the movement and coordination of the muscles.

Glabrous Skin

Skin that does not have hair follicles but contains larger numbers of sensory receptors than do hairy skin areas.