The Initial or Tentative Explanation of an Observation Is Called

question 111

Multiple Choice

The initial or tentative explanation of an observation is called a(n) ________.

• A)law
• B)theory
• C)hypothesis
• D)experiment
• E)test

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Definitions:

Decreasing Returns to Scale

A situation in which, as the scale of production increases, the output increases at a proportionally smaller rate, leading to increased average costs.

Long Run Average Cost Curve

A graphical representation showing the minimum average cost at which any output level can be produced in the long term when all inputs, including capital, are variable.

Increasing Returns to Scale

A situation in which a proportionate increase in all inputs leads to a greater proportional increase in output, indicating improved production efficiency.

Diminishing Marginal Returns

A principle stating that if one factor of production is increased while others remain constant, the overall returns will gradually decrease after a certain point.