A production function for which proportional changes in all inputs leads to a more-than-proportional change in output is said to exhibit
A. constant returns to scale.
B. diminishing returns.
C. decreasing returns to scale.
D. increasing returns to scale.
Answer: D
You might also like to view...
Figure 7-1
. In Figure 7-1, which graph best represents total physical product with diminishing returns?
A. 1 B. 2 C. 3 D. 4
An insolvent bank's assets are worth less than its liabilities
a. True b. False Indicate whether the statement is true or false
Many economists have argued that labor market regulations in the European Union have stifled efficiency and held down potential GDP. If this argument is correct, the removal of these regulations should:
A. shift the aggregate demand curve out to the right. B. not affect the aggregate supply or aggregate demand curves. C. shift the long-run aggregate supply curve out to the right. D. shift the short-run aggregate supply curve in to the left.
Suppose a manager is interested in implementing third-degree price discrimination. The manager knows that the price elasticity of demand for Group 1 is ?2 and the price elasticity of demand for Group 2 is ?1.2. Based on this information alone we can conclude that the price charged to Group 2 will be:
A. higher than the price charged to Group 1. B. the same as the price charged to Group 1. C. lower than the price charged to Group 1. D. There is insufficient information to determine whether Group 2 will have a higher, lower, or the same price as Group 1.