Returns to Scale Is a Concept That Operates

question 70

Multiple Choice

Returns to scale is a concept that operates

• A)only in the short run.
• B)only in the long run.
• C)in both the long run and the short run.
• D)in either the long run or the short run depending on the industry of the firm.

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Definitions:

Capital Budgeting

The strategy of organizing and overseeing a firm's extended investments in significant projects or assets.

Cash Flow

The aggregate measure of capital movement into and from a business, significantly affecting its solvency.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of maximization of shareholder wealth.

Income Tax Expense

The cost incurred by businesses and individuals due to earnings, computed based on tax rates and laws.