Increasing returns would be a situation where a firm increases its workforce and other inputs by:
A. 8 percent and its output increases by 5 percent
B. 5 percent and its output increase by 8 percent
C. 8 percent and its output increases by 8 percent
D. 12 percent and its output increases by 10 percent
B. 5 percent and its output increase by 8 percent
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Under a fixed exchange standard, if the domestic demand for foreign exchange increases
A) the central monetary authority must meet the demand out of its reserves. B) the central monetary authority must increase the supply of domestic money. C) the fixed exchange standard will breakdown. D) inflation will increase. E) the domestic currency must be depreciated.
Which of the following business combinations likely exhibit economies of scope?
A) Banking services for individuals and banking services for other business B) Retail clothing stores and electronic (internet) clothing sales C) Hospitals that perform heart surgery and hospitals that perform cosmetic surgery D) all of the above