Assume a Firm Is Using 10 Units of Labour and 10

question 29

Multiple Choice

Assume a firm is using 10 units of labour and 10 units of capital and is producing 10 units of output per hour.Now both inputs are doubled,resulting in output rising to 18 units per hour.The firm is experiencing

• A)constant returns to scale.
• B)increasing returns to scale.
• C)decreasing returns to scale.
• D)economies of scale.
• E)decreasing costs.

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Definitions:

Genetic Factors

The hereditary elements that contribute to the development of traits, behaviors, and conditions, including both the influence of individual genes and complex interactions among multiple genes.

Environmental Influence

Factors external to the individual, such as social, cultural, and physical environments, that impact behaviors, attitudes, and development.

Intelligence

The ability to acquire knowledge, think abstractly, understand complex ideas, learn from experience, adapt to new situations, and solve problems.

Cultural Disadvantages

Situations where certain populations or individuals face social, economic, or educational challenges due to cultural background or perceptions.