If a firm increases all of its inputs by 10 percent and its output increases by 10 percent, then:
A. the marginal products of all inputs are falling.
B. it is encountering diseconomies of scale.
C. it is encountering economies of scale.
D. it is encountering constant returns to scale.
Answer: D
You might also like to view...
Little Dicky Lemons operates a lemonade stand. Yesterday he sold 10 cups when he charged $1.00 per cu
A) .50 B) 1.0 C) 2.0 D) 4.0 E) 8.0
All else equal, compared to small-budget items such as paper towels, the price elasticity of demand for big-ticket items such as refrigerators is:
A. equal. B. lower. C. higher. D. very low.
Most of what we buy and sell never makes it out of domestic markets
Indicate whether the statement is true or false
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. exactly 20 B. more than 20 C. fewer than 20 D. exactly 90