Increasing the Wealth Gap Between Nations and Misusing and Misallocating

question 48

Multiple Choice

Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to

• A)cultural differences.
• B)multinational corporations.
• C)consumerism.
• D)legal differences.
• E)international negotiations.

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Definitions:

Constant Returns to Scale

A situation where increasing all inputs by the same proportion results in output increasing by that same proportion, indicating linear scalability of production processes.

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per-unit cost as output increases.