An Example of Increasing Returns to Scale Is When Capital

question 56

Multiple Choice

An example of increasing returns to scale is when capital and labor inputs:

• A) both increase 10 percent and output increases 5 percent.
• B) both increase 10 percent and output increases 10 percent.
• C) both increase 5 percent and output increases 10 percent.
• D) do not change and output decreases 5 percent.

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Definitions:

Objective Attributes

The tangible and measurable features of a product, such as quality, price, and size, which can be directly compared across products.

Postpurchase Behavior

Consumer actions and attitudes after buying a product, including usage, evaluation, and the expression of satisfaction or dissatisfaction.

Consumer Purchase Decision Process

The steps consumers go through, including need recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation, before buying a product or service.

Samsung Galaxy S10

A smartphone model developed by Samsung, launched as part of its Galaxy S series in 2019, known for its high-resolution camera and advanced features.