Constant Returns to Scale Are Associated with A

question 55

Multiple Choice

Constant returns to scale are associated with a:

• A) horizontal long-run average cost curve.
• B) horizontal short-run average cost curve.
• C) downward-sloping long-run average cost curve.
• D) downward-sloping short-run average cost curve.

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Definitions:

Production Possibilities

The different combinations of goods and services that an economy can produce efficiently with given resources and technology.

Limits

Concepts in mathematics and economics referring to the value that a function or sequence "approaches" as the input or index approaches some value.

GDP Percentage

A metric that represents a component of the Gross Domestic Product as a percentage of the total GDP, often used to assess economic health.

Industrially Advanced

Describes countries, regions, or businesses that have highly developed and sophisticated manufacturing capabilities and technologies.