Constant Returns to Scale Result When

question 13

Multiple Choice

Constant returns to scale result when:

• A)making a product involves repeating exactly the same tasks every time the item is made
• B)a business uses exactly the same total amount of inputs
• C)output increases by a greater percentage than an increase in inputs
• D)specialized machinery is used in production
• E)output increases by a smaller percentage than an increase in inputs

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Definitions:

Self-confirming Schema

Cognitive frameworks that cause individuals to interpret information in a way that confirms their preexisting beliefs and attitudes.

Confirmation Bias

The proclivity to selectively find, interpret, prioritize, and recollect data in a manner that affirms previously held notions or assumptions.

Preexisting Schemas

Cognitive frameworks or structures that already exist within our minds, influencing how we perceive and interpret new information.

Ambiguous Information

Information that lacks clarity, can be interpreted in multiple ways, or does not provide a clear direction or answer.