The Forest Service Is an Example of A(n)________ While the National

question 30

Multiple Choice

The Forest Service is an example of a(n) ________ while the National Aeronautics and Space Administration (NASA) is an example of a(n) ________.

• A)bureau-level agency; independent agency
• B)independent agency; bureau-level agency
• C)Cabinet-level department; bureau-level agency
• D)bureau-level agency; Cabinet-level department

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Definitions:

Decreasing Returns To Scale

Long-run average total cost increases as output increases (also known as diseconomies of scale).

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, typically resulting in cost per unit of output decreasing with increasing scale.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Production Function

The relationship between the quantity of inputs a firm uses and the quantity of output it produces.