In the long run, a firm is said to be experiencing decreasing returns to scale if a 10 percent increase in inputs results in

A) an increase in output from 100 to 110.
B) a decrease in output from 100 to 90.
C) an increase in output from 100 to 105.
D) a decrease in output from 100 to 85.

C

Economics

You might also like to view...

To earn a higher return on the assets in the Social Security trust fund, a suggestion has been made to allow the trust fund to

A) buy government bonds. B) sell limited partnerships. C) sell insurance. D) invest in the stock market.

Economics

There is only a small difference in wages between college graduates and workers who did not attend college

a. True b. False Indicate whether the statement is true or false

Economics