If a Firm Experiences Constant Returns to the Variable Input

question 58

Multiple Choice

If a firm experiences constant returns to the variable input in the short run:

• A)marginal cost will be greater than average variable cost, but the two will become more equal as output increases.
• B)marginal cost will be less than average variable cost, but the two will become more equal as output increases.
• C)marginal cost will be greater than average variable cost, and the difference between the two will become larger as output increases.
• D)marginal cost and average variable cost will be equal over the range of output in question.

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Definitions:

Paranoid Personality Disorder

A type of mental disorder characterized by pervasive distrust and suspicion of others' motives, leading to significant social and interpersonal problems.

Distrust

The feeling of suspicion or mistrust towards someone or something, often based on past experiences or perceptions.

Odd Personality Disorders

A cluster of personality disorders characterized by eccentric behaviors, thinking, or appearances, often alienating these individuals from others.

Schizophrenia

A complex psychiatric disorder characterized by disturbances in thought, perception, and behavior.