Rahim Owns a Candy Factory

question 140

Multiple Choice

Rahim owns a candy factory.If he decided to expand the size of his factory so that he could make more candy,how would he know if he is experiencing constant returns to scale?

• A) His long-run average cost of making each piece of candy remains unchanged.
• B) His long-run total cost of making candy decreases.
• C) His long-run average cost of making each piece of candy decreases.
• D) His long-run total cost of making candy remains unchanged.
• E) His long-run average cost of making each piece of candy increases.

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Definitions:

Ottonian Empire

A period in medieval Germany, roughly from 919 to 1024, characterized by the reign of the Ottonian dynasty which was noted for its consolidation of the kingdom and significant contributions to art and architecture.

Monasteries

Religious communities where monks or nuns live, work, and worship, often secluded from secular society and dedicating their lives to religious practice.

Gospel Book of Otto III

A medieval illuminated manuscript, richly decorated, which depicts the Gospel. It is associated with Emperor Otto III.

Ottonian Court

The Ottonian court refers to the court and culture surrounding the rulers of the Ottonian dynasty, which led the Holy Roman Empire from 919 to 1024, noted for fostering art, architecture, and scholarship.