Increasing Returns to Scale Refers to

question 14

Multiple Choice

Increasing returns to scale refers to

• A) more total factor productivity leading to greater aggregate output.
• B) lower real interest rates leading to greater aggregate output.
• C) output doubles as all inputs double.
• D) output more than doubles as all inputs double.
• E) marginal product of labour diminishes when quantity of capital increases.

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Definitions:

Narrowly

With limited scope or breadth; focusing closely on a specific or restricted area.

Supply-Side Perspective

An economic viewpoint focused on increasing production and supply as the key to economic growth, minimizing the role of demand.

Marketing Mix

A set of controllable tools—Product, Price, Place, and Promotion—that a company uses to pursue its marketing objectives in the target market.

Potential Substitutes

Products or services that serve as alternatives to an existing product, potentially satisfying the same need or demand in the market.