An Example of Decreasing Returns to Scale Is When Capital

question 30

Multiple Choice

An example of decreasing 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 increases 5 percent.

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Definitions:

Evolutionary Placement

The determination of the position or relationship of an organism or a group of organisms within an evolutionary tree, showing how species are related to each other.

Neandertals

An extinct species of humans who lived in Eurasia until approximately 40,000 years ago, known for their robust build and large brain capacity.

Earliest Primates

The initial members of the primate order, dating back to the Paleocene epoch, ancestral to modern primates including humans, apes, monkeys, and prosimians.

Bipedalism

The ability to walk upright on two legs, a key feature in human evolution.