Multiple Choice
Assume a firm is using 6 units of capital and 6 units of labour to produce 6 baskets.Now it doubles both inputs resulting in a new total of 16 baskets being produced.This firm is experiencing
A) decreasing returns to scale.
B) increasing returns to scale.
C) constant returns to scale.
D) diseconomies of scale.
E) increasing costs.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg" alt=" FIGURE 8-4 -Refer
Q7: For a firm with only two inputs,capital
Q8: Consider the long-run average cost curve for
Q9: Consider a firm that uses only labour
Q10: TABLE 8-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg" alt="TABLE 8-1
Q12: Which of the following factors is most
Q13: Assume a firm is using 10 units
Q14: Suppose that capital costs $10 per unit
Q15: Refer to Figure 8-6.As this firm is
Q16: When there is no other way of