If a Firms Cuts Inputs in Half, and Output Falls

question 90

Multiple Choice

If a firms cuts inputs in half, and output falls by more than half, then there are

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)constant returns to scale.
• D)decreasing marginal returns.

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Definitions:

Agonist

A chemical or drug that binds to receptors in the brain and causes a reaction, often mimicking the action of naturally occurring substances.

Autonomic Division

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Peripheral Nervous System

The part of the nervous system that lies outside the central nervous system, including nerves and ganglia, responsible for transmitting information to and from the brain and spinal cord.

Reflex

An automatic, involuntary reaction to a stimulus.