Constant Returns to Scale Are Said to Exist When Inputs

question 144

Multiple Choice

Constant returns to scale are said to exist when inputs are increased by some percentage and output increases by a(n) __________ percentage, causing unit costs to __________.

• A)greater; fall
• B)smaller; fall
• C)greater; rise
• D)smaller; rise
• E)equal; remain constant

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Definitions:

Constructive Failure

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Blame-Free Environment

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