John Owns a 1998 Toyota Camry That Has a Value

question 56

Multiple Choice

John owns a 1998 Toyota Camry that has a value of $775. In order to save some money, he has decided not to purchase _____ as part of his personal automobile policy (PAP) .

• A) Part A
• B) Part B
• C) Part C
• D) Part D
• E) Part E

---

Definitions:

Decreasing Returns

A principle where an increase in the amount of one factor of production, while other factors are held constant, results in a lower ratio of output per input.

Diminishing Returns

A principle stating that if one factor of production is increased while others are held constant, the incremental output will eventually decrease.

Scale

The size or level of something, often used to describe the scope of a business operation or production.

Increasing Returns

A situation in production where the output increases by a proportion greater than the increase in inputs, often leading to economies of scale.