Constant Returns to Scale Occur When

question 143

Multiple Choice

Constant returns to scale occur when

• A)the marginal cost curve lies below the average cost curve.
• B)the marginal cost curve is increasing at a decreasing rate.
• C)an increase in all resources results in exactly proportionate increases in output.
• D)the long-run average cost curve is declining.
• E)an increase in all resources causes no change in output.