Returns to Scale Refers To

question 56

Multiple Choice

Returns to scale refers to:

• A)the increase in output that accompanies an increase in one input, all other inputs held constant.
• B)a change in a production process that enables a firm to achieve more output from a given combination of inputs.
• C)the number of units of increase in output that can be obtained from an increase in one unit of input.
• D)the percentage by which output will increase when all inputs are increased by a given percentage.

---

Definitions:

Sequential Move Games

A type of strategic game in game theory where players make decisions or moves one after another in a predefined order.

Antitrust Laws

Legislation intended to promote competition and prevent monopolies by regulating anti-competitive conduct among businesses.

Price Fixing

An illegal agreement between competitors to fix prices at a certain level, rather than letting them fluctuate naturally with market forces.

Market Arrangements

Market arrangements refer to the structured organization and systems within which market transactions occur, including financial systems, trading systems, and legal frameworks.