Author Question: For building contractors, doubling the size of an office building does not require double the inputs ... (Read 42 times)

jayhills49 · **on:** Jun 30, 2018

For building contractors, doubling the size of an office building does not require double the inputs because there are common walls. This is an example of
a. increasing marginal product
b. diminishing marginal returns
c. economies of scale
d. diseconomies of scale
e. constant returns to scale

Question 2

Doubling the circumference of an oil pipeline more than doubles the volume of oil that can be pumped through. This is an example of
a. production inefficiency
b. diminishing marginal returns
c. diseconomies of scale
d. constant returns to scale
e. economies of scale