Question

a. The owner of Central Cupcake Shop finds that when she doubles the amount of flour she buys, but makes no other changes, cupcake output rises by 60%. This is an example of

Answer 1

Answer:

decreasing marginal returns

Explanation:

In this scenario, the owner of Central Cupcake Shop discover that when she doubles the amount of flour she buys without making additional changes, her cupcake output rises by 60%. This is an example of decreasing marginal returns.