A Firm Produces One Output Using One Input

question 11

Multiple Choice

A firm produces one output using one input.When the cost of the input was $3 and the price of the output was $3, the firm used 6 units of input to produce 18 units of output.Later, when the cost of the input was $7 and the price of the output was $4, the firm used 5 units of input to produce 20 units of output.This behavior

• A)is consistent with WAPM.
• B)is not consistent with WAPM.
• C)is impossible no matter what the firm is trying to do.
• D)suggests the presence of increasing returns to scale.
• E)suggests the presence of decreasing returns to scale.

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Definitions:

Amplitude

In physics, the maximum extent of a vibration or oscillation, measured from the position of equilibrium.

Loudness

A subjective measure of the sound pressure level, perceived as the intensity or volume of a sound.

Sound Wave

A type of wave that is an audible vibration that travels through air or other media.

Pitch

A tone's perceived frequency.