When a Firm Experiences Constant Returns to Scale

question 104

Multiple Choice

When a firm experiences constant returns to scale,

• A)long-run average total cost is unchanged, even when output increases.
• B)long-run marginal cost is greater than long-run average total cost.
• C)long-run marginal cost is less than long-run average total cost.
• D)the firm is experiencing coordination problems.

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Definitions:

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An individual who navigates daily life and social interactions based on personal knowledge and societal norms, without necessarily having a deeper understanding of the social sciences.

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Pertaining to the study of individual or small group social interactions and behaviors, in contrast to larger societal patterns.

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A branch of sociology that focuses on the study of society as a whole and large-scale social structures.

Christine Williams

A sociologist renowned for her contributions to the study of gender, work, and occupations, particularly in fields traditionally dominated by one gender.