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:

Wheel Of Retailing

A concept that describes how new types of retailers enter the market as low-status, low-margin stores and then evolve into higher-priced, higher-service establishments, eventually becoming similar to the conventional retailers they replaced.

Low Breadth

This term typically refers to a narrow scope or range of products, services, or areas of expertise within a business or activity, contrasting with a wide or diverse portfolio.

High Depth

High depth, in a business context, often refers to a significant level of detail, knowledge, or specialization in a particular area or activity.

Retail Innovation

The introduction of novel ideas, practices, or products in the retail sector aimed at enhancing customer experience, sales, and operational efficiency.