Decreasing Returns to Scale Occur When a Business

question 35

Multiple Choice

Decreasing returns to scale occur when a business:

• A)increases output by the same percentage as it increases all inputs for a certain product
• B)increases inputs by a given percentage to increase output by a higher percentage
• C)decreases inputs to produce a higher percentage increase in output
• D)increases inputs in order to produce a smaller percentage increase in output
• E)decreases both inputs and output simultaneously

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Definitions:

Pilot Study

A small-scale preliminary study conducted to evaluate feasibility, time, cost, risk, and adverse events, used to improve the design of a future full-scale research project.

Cross-Cultural Fairness

In assessment or testing, the principle of ensuring that tools and practices are equitable and do not favor one cultural group over others.

Item Response Theory

A theory and method in psychometrics that models the relationship between individuals' abilities or latent traits and their item responses, considering the properties of the items themselves.