Average Cost Declines as Output Expands in a Production Process

question 38

Multiple Choice

Average cost declines as output expands in a production process with:

• A) constant returns to scale.
• B) decreasing returns to scale.
• C) decreasing returns to a factor input.
• D) increasing returns to scale.

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Definitions:

Binary Search

A search algorithm that finds the position of a target value within a sorted array by repeatedly dividing in half the portion of the list that could contain the target, thereby reducing the search area.

Iterative Method

A technique in programming and mathematics that involves repeatedly applying a set of operations to approximate a desired result or to traverse data structures.

Recursively Written

Describes a method or algorithm that calls itself within its own code.

Iterative Version

A version of an algorithm that uses loops to repeat certain operations until a condition is met, as opposed to recursion.