Which of the Following Would Be Exhibited If a Doubling

question 70

Multiple Choice

Which of the following would be exhibited if a doubling of output can be achieved without doubling all the inputs?

• A) Decreasing returns to scale
• B) Diseconomies of scale
• C) Increasing returns to scale
• D) Constant returns to scale

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Definitions:

Collateral Promise

A secondary promise to pay another person's debt only if that person fails to pay.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the parties involved to be legally enforceable.

Oral Contract

An agreement between parties spoken out loud and not written down, yet still legally binding under certain conditions.

Memorandum of Agreement

A document outlining an agreement between parties before finalizing a more formal contract, detailing the preliminary terms and conditions.