If a Firm Builds a Larger Plant and Increases Output

question 184

True/False

If a firm builds a larger plant and increases output and if its long-run average total cost does not change,the firm has constant returns to scale.

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Definitions:

Distribution Games

Games used to study how individuals allocate resources or rewards between themselves and others.

Performance

The act of carrying out a task or function, often measured against pre-established standards such as speed, accuracy, or efficiency.

Audience

The person or group receiving a message.

Social Facilitation Theory

The theory that the presence of others increases a person’s dominant response—that is, the response that is most likely for that person for the task at hand.