Decreasing Returns to Scale May Occur as Increasing the Amount

question 55

Multiple Choice

Decreasing returns to scale may occur as increasing the amount of inputs used

• A) increases specialization.
• B) always increases the amount of output produced.
• C) may cause coordination difficulties.
• D) increases efficiency.

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Definitions:

Limited Partnership Agreement

A contract among partners in which some are liable only up to the amount of their investments while others are fully liable.

Limited Partners

Investors in a limited partnership who contribute capital but do not participate in management and whose liability for the partnership's debts is limited to their investment.

General Partners

Individuals in a partnership who share unlimited personal liability for the debts and obligations of the business, and who typically take part in managing the operations of the partnership.

Written Partnership Agreement

A legal document outlining the terms, conditions, and operational aspects of a partnership between two or more individuals or entities.