If a Firm Increases All of Its Inputs by 10

question 291

Multiple Choice

If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then

• A)it is encountering diseconomies of scale.
• B)it is encountering economies of scale.
• C)the law of diminishing returns is taking hold.
• D)the firm's long-run ATC curve will be rising.

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Definitions:

Tributaries

Smaller rivers or streams that flow into a larger river or lake, contributing to its overall water volume.

Sediment

Particulate organic and inorganic material that settles at the bottom of a liquid, often transported by water, wind, or ice.

Discharge

The flow rate of water from a given source, such as a river or aquifer, typically measured in volume per unit time.

Low-Gradient Stream

A stream with a gentle slope that typically has slower water velocity and can form wide meanders, floodplains, and deposits of sediments along its course.