Which of the Following Cases Exhibit Increasing Returns to Scale

question 11

Multiple Choice

Which of the following cases exhibit increasing returns to scale?

• A)Output increases by 5 percent when inputs are increased by 6 percent.
• B)Output increases by 6 percent when inputs are increased by 5 percent.
• C)Output increases by 7 percent when inputs are increased by 7 percent.
• D)Output declines by 2 percent when inputs are increased by 1 percent.

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Definitions:

P-Toluic Acid

A type of benzoic acid derivative where the methyl group is positioned para to the carboxylic acid group.

Toluene

An aromatic hydrocarbon used as an industrial solvent, known for its benzene ring attached to a methyl group.

Alkenes

Unsaturated hydrocarbons containing at least one carbon-carbon double bond, characterized by the general formula CnH2n.

Propanoic Acid

An organic compound, also known as propionic acid, characterized by a three-carbon straight-chain structure with a carboxylic acid functional group.