If a Firm Increases All of Its Inputs by 18

question 236

Multiple Choice

If a firm increases all of its inputs by 18 percent and its output increases by 14 percent, then

• A)it is encountering constant returns to scale.
• B)it is encountering economies of scale.
• C)it is encountering diseconomies of scale.
• D)the firm's long-run ATC curve will be falling.

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Definitions:

Retreatist Subculture

A social group that rejects both the societal goals and the means to achieve them, retreating from society's expectations.

Double Failures

Situations or instances where two simultaneous shortcomings or losses occur.

Positivists

Positivists believe in the empirical observation and scientific approach to knowledge, emphasizing that information derived from sensory experience and interpreted through reason and logic forms the exclusive source of all authoritative truth.

Underlying Causes

The fundamental reasons or conditions that give rise to specific events, issues, or situations.