In the Long Run,a Firm Is Said to Be Experiencing

question 3

Multiple Choice

In the long run,a firm is said to be experiencing decreasing returns to scale if a 10 percent increase in inputs results in

• A)an increase in output from 100 to 110.
• B)a decrease in output from 100 to 90.
• C)an increase in output from 100 to 105.
• D)a decrease in output from 100 to 85.

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Definitions:

Foreign Bonds

Bonds issued in a domestic market by a foreign entity, in the domestic market's currency, as a method of securing capital from investors in that market.

International Bonds

Bonds issued in a country by a non-domestic entity, which can be denominated in the domestic or a foreign currency.

Exchange Rate

The rate at which one currency can be traded for another in the currency exchange market.

Constant Among Currencies

A concept or value that remains unchanged when compared across different currencies.