If a Firm Triples All of Its Inputs and Its

question 141

Multiple Choice

If a firm triples all of its inputs and its output doubles, it is said to be experiencing

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

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Definitions:

Selectively Noticing

The cognitive process of focusing attention on certain stimuli or information while ignoring others, often based on personal relevance or importance.

Attention

The process of selectively concentrating on one aspect of the environment while ignoring other things.

Short-term Memory

The capacity for holding, but not manipulating, a small amount of information in mind in an active, readily available state for a short period of time.

Plus Or Minus

A symbol indicating the precision of an approximation or variation that could occur within a certain range.