If General Electric Finds That When It Doubles Both Its

question 16

Multiple Choice

If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then

• A) the law of diminishing returns is in effect.
• B) long-run average costs must be decreasing.
• C) the firm is experiencing diseconomies of scale.
• D) the firm should increase production.
• E) the firm is experiencing constant returns to scale.

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Definitions:

Acute Infection

A rapid onset of disease due to the invasion of pathogens in the body, characterized by rapid progression and often severe symptoms.

Firm but Freely Movable

A description often used in medical examinations to describe a lump or mass that is solid to the touch yet can be moved easily under the skin.

Bruit

An abnormal sound or murmur heard during auscultation, often indicative of a narrowing or blockage in an artery.