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:

Religious View

The perspective, beliefs, or doctrines held regarding the nature of the divine, morality, and the purpose of life, based on a particular religion.

Sociological Imagination

The ability to see the relationship between individual experiences and larger social influences.

Social Solidarity

The bond of unity and mutual support among members of a society, stemming from shared values, beliefs, and interests.

Dialectical Socialism

A philosophy that applies the dialectic method to socialism, suggesting societal change comes from the conflict between opposing forces, aiming for a classless society.