If a Firm Doubles Its Usage of All Inputs,and Output

question 63

Multiple Choice

If a firm doubles its usage of all inputs,and output more than doubles,the production function is said to exhibit:

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)constant returns to scale.
• D)increasing marginal returns to a fixed factor of production.

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Definitions:

Equal Probability

A statistical condition where all outcomes have the same chance or likelihood of occurring.

Experimental Method

A research method involving the manipulation of variables to establish cause-and-effect relationships.

Variable Manipulation

The systematic adjustment or alteration of the independent variables in an experiment to observe their effect on the dependent variables.

Controlled Conditions

A methodological practice in experiments where all variables are kept constant except for the independent variable being tested.