A Firm That Doubles Its Use of Inputs to Produce

question 14

Multiple Choice

A firm that doubles its use of inputs to produce ______ output has constant returns to scale.

• A)twice as much
• B)three times as much
• C)50% more
• D)half the original

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Definitions:

Preemptive Practices

Strategies or actions taken by a business to prevent competitors from entering their market or to gain an advantage over them.

Small Businesses

Companies with limited revenue and staff, playing a vital role in the economy by providing localized services and innovations.

Private-Sector Employees

Refers to individuals who are employed by businesses or organizations that are not owned or operated by the government.

Robinson-Patman Act

A 1936 United States law aimed at preventing unfair competition and price discrimination by requiring sellers to offer the same price terms to all buyers.