If the First Two Statements Are True, Is the Third

question 251

Multiple Choice

If the first two statements are true, is the third statement true?
Employees at XYZ corp must take classes to earn a raise.
Stacy earned a raise at XYZ corp.
Stacy took classes.

• A)yes
• B)no
• C)uncertain

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Definitions:

Constant Returns to Scale

A situation in production where increasing all inputs by a certain factor results in output increasing by the same factor, indicating proportionate scalability.

AP

Advance Placement; a program in the United States and Canada offering college-level curriculum and examinations to high school students.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies of Scale

The situation where a company or business grows so large that the costs per unit increase, leading to inefficiency.