An Example of Increasing Returns to Scale Is When Capital

question 151

Multiple Choice

An example of increasing 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 decreases 5 percent.

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Definitions:

Group Size

The number of individuals making up a collective or group, influencing dynamics such as communication and cohesion.

Conformity

Conformity is the act of matching attitudes, beliefs, and behaviors to group norms, expectations, or pressures.

Steadily

In a constant, consistent, and uninterrupted manner, often used to describe a process that continues or evolves without significant changes or interruptions.

Implicit Attitudes

Unconscious beliefs or feelings towards objects, people, or situations, which can influence behavior without one's awareness.