One Reason That Firms Will Experience Decreasing Returns to Scale

question 35

Multiple Choice

One reason that firms will experience decreasing returns to scale is

• A) The law of diminishing marginal returns
• B) The specialization of inputs as scale increases
• C) There is some fixed input that isn't being taken into consideration
• D) It is difficult to manage a large firm effectively

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Definitions:

Benzodiazepine

A class of drugs primarily used for treating anxiety, insomnia, and seizures by enhancing the effect of the neurotransmitter GABA in the brain.

Selective Serotonin Reuptake Inhibitor (SSRI)

A class of drugs commonly used to treat depression and anxiety by increasing serotonin levels in the brain, thereby improving mood.

Obsessive-Compulsive Disorder (OCD)

Anxiety disorder characterized by obsessions (persistent thoughts) and compulsions (rituals).

Intrusive Thoughts

Unwanted thoughts or images that can be distressing and difficult to manage.