Increasing Returns to Scale

question 22

Multiple Choice

Increasing returns to scale:

• A) occur only where marginal returns are increasing.
• B) cannot occur if all inputs have diminishing returns.
• C) imply imperfect capital market returns.
• D) result from just-in-time production.
• E) are consistent with diminishing marginal returns by all inputs.

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Definitions:

Physiological Needs

Basic bodily requirements for human survival, such as food, water, air, and shelter, according to Maslow's hierarchy.

Self-actualization

The achievement or actualization of one's abilities and potentials, particularly seen as a universal drive or necessity in all individuals.

Self-respect

The regard for one's own well-being and dignity, often considered a crucial component of healthy self-esteem.

Optimal Experience

Also known as "flow," a state in which an individual is fully immersed in an activity, experiencing a heightened sense of focus, involvement, and enjoyment.