If doubling the quantity of inputs more than doubles the quantity of outputs, the firm is experiencing
a. increasing returns to scale.
b. decreasing returns to scale.
c. constant returns to scale.
d. increasing costs per unit of output.
a
Economics
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When people purchase health insurance and then change their behavior after the purchase because the insurance protects them from loss, the health insurance market is said to face the problem of
A) asymmetric information. B) moral hazard. C) adverse selection. D) the rationality paradox.
Economics
If buyers' tastes and preferences shift in favor of a good, the result is
a. an increase in quantity demanded b. an increase in demand c. an increase in quantity demanded and an increase in supply d. a decline in supply e. an increase in supply
Economics