The Term "Constant Returns to Scale" Describes a Situation Where

question 4

Multiple Choice

The term "constant returns to scale" describes a situation where

• A) expanding all inputs does not change the average cost of production.
• B) a larger-scale firm can produce at a lower cost than a smaller-scale firm.
• C) expanding all inputs changes the average cost of production.
• D) the quantity of output rises and the average cost of production falls.

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Definitions:

Enlarged Job

A concept referring to the expansion or increase in the scope and responsibilities of a particular job role.

Job Enriched

A job design technique that aims to increase employee satisfaction by giving them more responsibilities and opportunities to make decisions.

Responsibility

The obligation to perform duties or tasks correctly and being accountable for the outcomes.

Stable Workforce

A stable workforce refers to a work environment where the number of employees and their job roles remain constant over time, minimizing turnover and fostering consistent productivity and organizational knowledge.