Assume a Firm Is Using 10 Units of Capital and 10

question 27

Multiple Choice

Assume a firm is using 10 units of capital and 10 units of labour to produce 10 widgets per hour.By doubling both inputs the result is a doubling of output.This firm is experiencing

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

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Definitions:

Relevant Content

Information or data that is directly related and useful to the current topic or situation.

Sampling Error

Sampling error is the discrepancy between the characteristics of a sample and those of the overall population from which it was drawn, affecting the accuracy of results.

Collecting Data Systematically

The process of gathering information following a structured methodology to ensure accuracy and consistency.

Minimizing Sources of Error

Implementing strategies to reduce mistakes and inaccuracies in research or data collection.