If General Electric Finds That When It Doubles Both Its

question 16

Multiple Choice

If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then

• A) the law of diminishing returns is in effect.
• B) long-run average costs must be decreasing.
• C) the firm is experiencing diseconomies of scale.
• D) the firm should increase production.
• E) the firm is experiencing constant returns to scale.

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Definitions:

Decay Rate

The rate at which radioactive substances lose their activity over time, leading to the decrease in the number of radioactive atoms present.

Radioactive

Having the property of emitting ionizing radiation or particles as a result of nuclear decay.

Radiometric Dating

Radiometric dating is a technique that allows geologists to estimate the precise ages at which one geological formation ends and another begins.

Tyrannosaurus Rex

A large carnivorous dinosaur that lived during the late Cretaceous period and is known for its massive size and powerful bite.