A Large Blast Furnace Is an Example of an Indivisible

question 7

True/False

A large blast furnace is an example of an indivisible input that cannot be scaled down to reduce output.

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Definitions:

Returns To Scale

A concept in economics that describes how the output of a production process changes as the scale of production inputs changes.

Production Function

A mathematical model that describes the relationship between inputs used in production and the resultant output.

Isoquant

An isoquant is a curve depicting all combinations of inputs which produce the same level of output, used in the study of production theory.

Production Functions

A formula that relates the output of goods and services to the inputs used in their production.