Increasing Returns to Scale Means That

question 26

Multiple Choice

Increasing returns to scale means that

• A) doubling all inputs leads to a more than proportional increase in output.
• B) doubling all inputs leads to a proportional increase in output.
• C) doubling all inputs leads to a less than proportional increase in output.
• D) doubling all inputs leads to a decrease in output.

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Definitions:

Persuasive Arguments

Reasonings or logics presented with the intent to convince or influence others to adopt a certain belief or take specific action.

Risky Shift

A phenomenon in which group decisions tend to be more extreme, including taking greater risks, than individual decisions.

Groupthink

A psychological phenomenon where the desire for harmony and conformity within a group leads to irrational or dysfunctional decision-making outcomes.

Social Identity

The aspect of a person's self-identity that comes from their understanding of belonging to certain social groups.