Many mining and mineral extraction processes tend to exhibit increasing returns to scale
Suppose copper mines have increasing returns, and the existing copper mines reduce their capital and labor inputs by 25 percent in response to a global recession. What is the expected impact on copper output? A) Output increases by less than 25 percent
B) Output decreases by less than 25 percent
C) Output decreases by exactly 25 percent
D) Output decreases by more than 25 percent
D
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According to monetarists, which of the following would be most important for the control of inflation?
a. a steady increase in federal expenditures b. the imposition of price controls c. keeping the growth rate of the money supply low and steady d. a steady increase in the size of the budget deficit
Capital flight is a barrier to economic growth in developing countries.
Answer the following statement true (T) or false (F)