A Firm Uses Only Two Inputs to Produce Its Output

question 17

Multiple Choice

A firm uses only two inputs to produce its output.These inputs are perfect substitutes.This firm

• A)must have increasing returns to scale.
• B)must have constant returns to scale.
• C)could have increasing returns to scale, constant returns to scale, or decreasing returns to scale.
• D)must have decreasing returns to scale.
• E)must have decreasing returns to scale in the short run and constant returns to scale in the long run.

Understand the impact of regulatory reforms on attracting foreign investment.

Recognize the ethical and legal considerations in international business practices.

Explain the process and significance of arbitration in international disputes.

Understand foreign ownership regulations and their impact on international investments.

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Definitions:

Sedition Law

Legislation that restricts speech or actions considered to be aimed at inciting rebellion against the authority of a state.

Louisiana Purchase

The 1803 acquisition by the United States of approximately 828,000 square miles of territory from France, more than doubling the size of the U.S. at the time.

Republicanism

A political ideology that values the principles of a republic, emphasizing representative democracy, civic virtue, and opposition to monarchy and tyranny.

Napoleon

A French military leader and emperor who rose to prominence during the French Revolution and subsequent Napoleonic Wars, known for his significant impact on European history.