A Production Function for Which Proportional Changes in All Inputs

question 26

Multiple Choice

A production function for which proportional changes in all inputs leads to a more-than-proportional change in output is said to exhibit

• A)Diminishing returns
• B)Decreasing returns to scale
• C)Constant returns to scale
• D)Increasing returns to scale

---

Definitions:

Pharmaceutical Company

A business entity focused on research, development, production, and marketing of medications and drugs for use in healthcare.

European Union

A political and economic union of member states that are located primarily in Europe, fostering regional integration.

Sequential Game

A type of game in game theory where players make decisions one after another, rather than simultaneously, allowing for a strategic consideration of the previous actions.

Battle of the Sexes

A game theory model illustrating coordination problems through the preferences of two individuals trying to agree on a common decision with conflicting interests.