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:

Embarrassing Oneself

The act of causing oneself to feel awkward, self-conscious, or ashamed in public or social situations.

Social Anxiety Disorder

A chronic mental health condition characterized by overwhelming anxiety and self-consciousness in everyday social situations.

Phobia

An intense, irrational fear of, or aversion to, specific objects, activities, or situations.

Feared Situations

Specific scenarios or conditions that provoke intense fear or anxiety in an individual, often related to phobias or anxiety disorders.