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Suppose a two-dimensional landscape image consists of 20,000 square pixels. If the size of each pixel were cut in half, _______ as many pixels would be needed to portray the same landscape. Such a decrease in the pixel size would represent a change in the _______ of the landscape.
Average Variable Cost
The total variable cost divided by the quantity of output produced; it shows the variable cost per unit of output.
Increasing Returns to Scale
A situation in production where doubling the inputs results in more than doubling the output, leading to efficiencies and economies of scale.
Decreasing Returns to Scale
A situation in which a firm experiences a less than proportional increase in output despite a proportional increase in all inputs, typically due to inefficiencies.
Increasing Opportunity Costs
The concept that as you produce more of one good, the opportunity cost of producing that next unit increases.
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