If All Resources Used in the Production of a Product

question 186

Multiple Choice

If all resources used in the production of a product are increased by 10 percent and output increases by less than 5 percent, then the firm is experiencing

• A)economies of scale.
• B)diseconomies of scale.
• C)constant returns to scale.
• D)decreasing average total costs.

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Definitions:

Active Users

Individuals who have engaged with a software application, website, or online platform within a specific period, indicating a level of engagement or interest.

Targeting Strategy

The method a business uses to identify and serve potential consumer segments with tailored products or marketing.

Potential Savings

The amount of money that could be saved or the reduction in costs that could be achieved under different circumstances or by implementing certain strategies.

Marketing

The collection of activities, organizations, and processes involved in producing, distributing, and promoting goods that provide value to consumers, business partners, and the wider community.