A Firm Uses Workers and Seed to Grow Lettuce

question 126

Multiple Choice

A firm uses workers and seed to grow lettuce.Its lettuce output rises from 100 tons to 200 tons when the number of workers increases from 25 to 75.Its production process shows

• A)decreasing returns to scale.
• B)diminishing returns to labor.
• C)increasing long-run average cost.
• D)decreasing short-run average variable cost.

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Definitions:

Situational Factors

External elements or circumstances that can influence an individual's behavior or the outcome of a decision or event.

Contrast Effect

An effect that takes place when people rank something higher or lower than they should as a result of exposure to recent events or situations.

Perceptual Distortion

An error in perception resulting from individual biases or misinformation, affecting the interpretation of reality.

Attribution Theory

A theory that holds that people look for two causes to explain the behavior of others: internal attributions, which are personal characteristics of others, and external attributions, which are situational factors.