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:

Bacteriophages

Viruses that infect and replicate within bacteria, often used as tools in molecular biology and genetics.

Plasmids

Small, circular, double-stranded DNA molecules that are separate from a cell's chromosomal DNA and can replicate independently, often used in genetic engineering.

Recombinant Organisms

Organisms that have been genetically engineered by inserting DNA from a different organism to gain desired traits.

Sticky Ends

are the single-stranded overhangs left after DNA is cut by certain restriction enzymes, which can bond with complementary sticky ends of other DNA fragments.