Author Question: In a production process, all inputs are increased by 10; but output increases less than 10. This ... (Read 117 times)

littleanan · **on:** Jul 1, 2018

In a production process, all inputs are increased by 10; but output increases less than 10. This means that the firm experiences

A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale.
D) negative returns to scale.

Question 2

Refer to Scenario 17.4. If there is no flood insurance and the flood control system is in place, the expected loss from a flood is

A) 5,000.
B) 10,000.
C) 100,000.
D) 200,000.
E) 1,000,000.