Suppose Ford Could Triple Production of Mustangs by Tripling Its

question 59

Multiple Choice

Suppose Ford could triple production of Mustangs by tripling its production facilities for those cars. This is an example of

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)diminishing marginal rate of substitution.
• D)the law of diminishing returns.
• E)constant returns to scale.

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Definitions:

Proportion

Refers to the ratio of a part or portion of the total count, quantity, or amount in a given context.

Freshmen

Students in their first year of study at a high school or university.

Standard Error

A statistical measure that shows the precision of a sample's mean estimate of a population mean.

Sampling Variability

The variability of sample statistics over different samples of the same size from the same population, due to chance.