For Two Substitutes in Production,if the Scale Effect Dominates

question 19

Multiple Choice

For two substitutes in production,if the scale effect dominates,

• A) then the inputs are gross complements.
• B) then the inputs are gross substitutes.
• C) then the inputs could be either gross complements or gross substitutes.
• D) then the inputs cannot be used at the same time.

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Definitions:

Transactive Memory

A shared system for encoding, storing, and retrieving information within a close relationship or group.

Polarization

The division of attitudes or beliefs into two sharply contrasting groups or sets of opinions or beliefs.

Power

One person’s control over another person, including what happens to that person.

Relationship-oriented

Characterises individuals or organizational cultures that prioritize and value personal relationships and interactions.