If Constant Returns to Scale Are Present

question 23

Multiple Choice

If constant returns to scale are present,

• A)average total cost is decreasing.
• B)average total cost is increasing.
• C)the LRAC curve is horizontal.
• D)the LRAC curve is downward sloping.
• E)the LRAC curve is upward sloping.

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Definitions:

Howard Bowen

Often referred to as the "Father of Corporate Social Responsibility," Howard Bowen was an economist who highlighted the responsibilities of businesses towards society.

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