When Each Additional Resource Adds Increasing Amounts of Additional Output,it

question 26

Multiple Choice

When each additional resource adds increasing amounts of additional output,it refers to a situation of:

• A)constant returns.
• B)economies of scale.
• C)diseconomies of scale.
• D)diminishing returns.
• E)increasing returns.

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Definitions:

Price War

Successive, competitive, and continued decreases in the prices charged by firms in an oligopolistic industry. At each stage of the price war, one firm lowers its price below its rivals’ price, hoping to increase its sales and revenues at its rivals’ expense. The war ends when the price decreases cease.

OPEC

The Organization of the Petroleum Exporting Countries, a group of oil-producing nations that coordinates policies to control the supply and influence the price of oil on the global market.

Oil Cartel

An alliance of oil-producing countries or companies that agree to control oil production levels and prices, often to exert influence on the global market.

Norway

A country in Northern Europe known for its extensive coastline, fjords, and high standards of living.