A Firm Doubles the Quantity of All Resources It Employs

question 346

Multiple Choice

A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct?

• A)There are increasing returns to scale.
• B)The long-run average total cost curve is flat.
• C)The law of diminishing returns is proven wrong.
• D)The example is for the short-run rather than the long-run.

---

Definitions:

Demographics

Statistical data relating to the population and particular groups within it, often used to identify trends and patterns regarding age, gender, income level, and education.

Valuing Coworker Diversity

Acknowledging and appreciating the differences and unique contributions of coworkers from various backgrounds, leading to a more inclusive and productive workplace environment.

Global Work Force

Refers to the international labor pool of workers, enabling companies to draw employees from around the globe for diverse and skilled talent.