What Does the Term "Decreasing Returns to Scale" Mean

question 34

Multiple Choice

What does the term "decreasing returns to scale" mean?

• A)The situation where a doubling of inputs results in output increasing by less than double.
• B)The situation where a firm's output decreases in proportion to the decrease in its inputs.
• C)It means that the firm is operating on the falling portion of its long run average cost curve.
• D)It means that the firm is operating on the horizontal portion of its long run average cost curve.

---

Definitions:

Relief Programs

Government initiatives designed to provide support and assistance to individuals and communities in economic hardship.

Male Head of Household

Traditionally refers to the male family member responsible for the financial support and decision-making within the household.

Franklin Delano Roosevelt

The 32nd President of the United States (1933-1945), he led the country through the Great Depression and World War II, and is known for his New Deal policy.