Constant Returns to Scale Occur When the Firm's Long-Run

question 14

Multiple Choice

Constant returns to scale occur when the firm's long-run

• A)total costs are constant as output increases.
• B)average total costs are constant as output increases.
• C)average cost curve is falling as output increases.
• D)average cost curve is rising as output increases.

---

Definitions:

Privacy Act of 1974

A U.S. law that establishes a Code of Fair Information Practice which governs the collection, maintenance, use, and disseminating of personally identifiable information about individuals that is maintained in systems of records by federal agencies.

Internal Revenue Service

The Internal Revenue Service (IRS) is the agency of the U.S. government tasked with collecting taxes and enforcing the laws related to taxes.

Government in the Sunshine Act

A U.S. law aimed at ensuring that agencies conduct their meetings in public, promoting transparency.

Public Observation

The act of watching, monitoring, or scrutinizing activities, processes, or events by the general public, often for oversight or interest purposes.