Increasing Returns Would Be a Situation Where a Firm Increases

question 230

Multiple Choice

Increasing returns would be a situation where a firm increases its workforce and other inputs by

• A)8 percent and its output increases by 5 percent.
• B)5 percent and its output increase by 8 percent.
• C)8 percent and its output increases by 8 percent.
• D)12 percent and its output increases by 10 percent.

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Definitions:

Consensus

A general agreement or the practice of developing such an agreement among the members of a group or community.

Frequency

The rate at which an event or occurrence happens within a given period of time.

Stereotype

A generalized belief or expectation about a particular group or class of people that individuals apply to members of that group.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.