If a Firm Increases Inputs by 15 Percent and Output

question 208

Multiple Choice

If a firm increases inputs by 15 percent and output increases by 12.5 percent, the firm is experiencing

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)constant returns to scale.
• D)increasing costs per unit of output.

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Definitions:

Product Placement

A marketing strategy that involves placing branded products or advertisements within entertainment content, such as films, TV shows, or video games, to increase brand recognition and influence consumer behavior.

Innovative Advertising

Advertising strategies that introduce new concepts, formats, or creative approaches to engage consumers and stand out in the marketplace.

Plinking

The casual or recreational shooting of targets like cans, bottles, and other small objects, typically with a small firearm or airgun.

Social Networking Sites

Online platforms that facilitate building social networks or social relations among people who share interests, activities, backgrounds, or real-life connections.