Multiple Choice
Suppose Ford could triple production of Mustangs by tripling its production facilities for those cars. This is an example of
A) constant returns to scale.
B) increasing returns to scale.
C) decreasing returns to scale.
D) the law of diminishing returns.
E) diminishing marginal rate of substitution.
Correct Answer:
Verified
Correct Answer:
Verified
Q59: The optimal consumption bundle is the point
Q60: We assume that the representative consumer's preferences
Q61: Perfect complements will have<br>A) straight line indifference
Q62: An indifference curve<br>A) connects a set of
Q63: The real wage denotes<br>A) the number of
Q65: The slope of the indifference curve is
Q65: As the quantity of capital increases, the
Q66: The consumer's work-leisure choice problem focuses on
Q67: A consumer is said to be indifferent
Q68: Moving down the indifference curve, the marginal