Constant Returns to Scale Means That Long-Run

question 96

Multiple Choice

Constant returns to scale means that long-run:

• A) ATC increases as output increases.
• B) ATC decreases as output decreases.
• C) ATC rises and then falls as output increases.
• D) ATC does not change as output increases.

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Definitions:

Mutual Mistake

A contract law term where all parties involved have a mistaken understanding about a crucial aspect of the agreement.

Basic Assumption

A fundamental belief or principle that is accepted as true without need for proof, underlying the basis of an argument or theory.

Material Effect

An impact significant enough to influence a decision, outcome, or valuation, often used in legal and financial contexts.

Rescind

means to revoke, cancel, or repeal a contract, decision, or agreement.