Which of the Following Is Most Likely an Example of Constant

question 74

Multiple Choice

Which of the following is most likely an example of constant returns to scale?

• A) The per-unit costs of Excel Publishing Company's manuals fell after a large order was received from the government.
• B) Alpha-Beta Inc. raised its price 10 percent after a 5 percent increase in production costs.
• C) Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant.
• D) The XYZ Co. increased production 25 percent and experienced a 30 percent increase in its total cost.