When a Firm with Constant Returns to Scale Uses 30

question 197

Multiple Choice

When a firm with constant returns to scale uses 30% more of all inputs and input prices remain unchanged,then

• A) total cost rises by less than 30%.
• B) average cost falls by 30%.
• C) total cost rises by more than 30%.
• D) average cost remains unchanged.
• E) average cost rises by 30%.

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Definitions:

Artifacts

Tangible elements within an organization's culture, such as symbols, physical structures, language, and rituals, that collectively manifest its values and norms.

Values

The fundamental beliefs and principles that guide individual and organizational behavior and decision-making.

Deepest Element

The most fundamental, underlying component in a theoretical or conceptual framework.

Organizational Culture

Embodies the values, beliefs, behaviors, and norms that shape the social and psychological environment of a business organization.