Decreasing Returns to Scale Is a Feature of a Technology

question 36

True/False

Decreasing returns to scale is a feature of a technology that is such that, when all inputs are increased by a fixed multiple λ, output increases by less than that multiple.

---

Definitions:

Opportunity Costs

The cost of choosing one option instead of the next best alternative, representing the benefits missed out on.

Certainty Equivalent Factors

The adjusted value of risky outcomes to reflect the investor's risk aversion, often used in capital budgeting.

Life Span

The duration or length of life of an organism, object, or system, often used in the context of product life cycles or human longevity.

Portfolio

In finance, a collection of investments.