For Building Contractors, Doubling the Size of an Office Building

question 163

Multiple Choice

For building contractors, doubling the size of an office building does not require double the inputs because there are common walls.This is an example of

• A)increasing marginal product
• B)diminishing marginal returns
• C)economies of scale
• D)diseconomies of scale
• E)constant returns to scale

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Definitions:

Possibility of Reverter

A future interest in real estate, reverting back to the original owner or their heirs if certain conditions are met or not maintained.

Tenancy by the Entireties

A form of joint property ownership exclusive to married couples, offering protections against creditors and automatic survivorship rights.

Conveyance

The act of transferring ownership of real property from one person to another.

Divorce

The legal dissolution of a marriage by a court or other competent body.