Which of the Following Is True of a Firm That

question 44

Multiple Choice

Which of the following is true of a firm that faces increasing returns to scale?

• A) An increase in the quantity of one input will increase output by a greater proportion.
• B) As the quantity of all inputs are increased, the average cost of production will increase.
• C) A given increase in the quantity of all inputs will increase output by a greater proportion.
• D) As the quantity of one input is increased, its marginal product will increase at an increasing rate.
• E) As the quantity of one input is increased, the marginal cost of production will decline.

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Definitions:

Neglect

The failure to provide for or attend to someone's needs, care, or wellbeing.

Low-income

A term describing individuals or families that earn significantly less than the average income, often leading to limited access to resources and opportunities.

Middle-income

refers to individuals, families, or countries that fall between the economic classification of poor and wealthy, often characterized by moderate living standards and financial stability.

High-income

Refers to individuals or households that earn significantly above the average income level.