A Situation Known as _____________________ Occurs When All Production Inputs

question 40

Multiple Choice

A situation known as _____________________ occurs when all production inputs are allowed to expand, but that expansion does not result in much of a change in the average cost of production.

• A) returns to scale
• B) economies of scale
• C) constant returns to scale
• D) diminishing marginal returns

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Definitions:

Bonds

Long-term debt instruments issued by corporations or governments to raise capital, with the issuer promising to pay back the principal along with interest on specified dates.

Annual Interest Payment

the amount of money paid in interest to lenders or bondholders over the course of a year.

Accounting Period

A specific period of time covered by financial statements, usually a fiscal quarter or year.

Journal Entry Grid

A tool used in accounting to visually organize and record the debits and credits of transactions.