If the Economy Is Characterized by Increasing Returns to Scale,then

question 94

Multiple Choice

If the economy is characterized by increasing returns to scale,then a

• A)doubling of inputs will lead to a more than two-fold increase in output.
• B)doubling of inputs will lead to a constant output.
• C)doubling of inputs will lead to a two-fold increase in output.
• D)doubling of inputs will lead to a less than two-fold increase in output.

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Definitions:

Net Income

The residual income a company has after expenses and taxes are deducted from its total income.

Comprehensive Income

The change in equity of a company during a period from transactions and other events, including all non-owner changes.

Sales

The total revenue a company generates from selling goods or services within a specific period.

Cost of Goods Sold

The immediate expenses linked to the manufacturing of products sold by a business, covering both material and labor costs.