Thursday, 8 October 2015

Cima C04 Exam Question No 27

Question No 27:

If, in the long run, a business doubles all the inputs it uses, but total physical output less than doubles, the business is experiencing:

A.
Diminishing returns.
B.
Decreasing returns to scale.
C.
Price elasticity of demand of less than 1
D.
Market saturation

Answer: B

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