Decreasing Returns to Scale and Diminishing Returns Differ in That

question 24

Multiple Choice

Decreasing returns to scale and diminishing returns differ in that

• A)Diminishing returns is a long-run concept while decreasing returns to scale is a short-run concept.
• B)Diminishing returns is a short-run concept while decreasing returns to scale is a long-run concept.
• C)Diminishing returns is a both short and long-run concept while decreasing returns to scale is a short-run concept.
• D)Diminishing returns is a long-run concept while decreasing returns to scale is a short and long-run concept.

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players' strategies remain unchanged.

Competitor's Pie

A metaphorical representation of the total market share or demand available to all competitors within a market.

Simultaneous Move Game

A type of game theory scenario where all participants choose their actions without knowledge of the others' decisions at the same time.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged.