If a Firm's Production Process Exhibits Increasing Returns to Scale

question 139

Multiple Choice

If a firm's production process exhibits increasing returns to scale, then doubling all the firm's inputs will lead output to ________.

• A)double.
• B)more than double.
• C)less than double.
• D)fall by one-half.

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Definitions:

Optimistic

Possessing a hopeful or confident attitude towards the future or the success of something.

Explanatory Style

A way of explaining to ourselves ourrelative lack of control over our environment. An optimistic explanatory style can prevent learned helplessness; a pessimisticexplanatory style spreads helplessness to all facets of life.

Recovery

Recovery is the process of returning to a normal state of health, mind, or strength after experiencing illness, addiction, or trauma.

Learned Helplessness

A state where an individual experiences feelings of being powerless, triggered by traumatic experiences or ongoing inability to achieve success.