Constant Returns to Scale Occur When

question 102

Multiple Choice

Constant returns to scale occur when:

• A)an increase in the quantity of output decreases average total cost in the long run.
• B)an increase in the quantity of output increases average total cost in the long run.
• C)average total cost does not depend on the quantity of output in the long run.
• D)None of these are correct.

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Definitions:

Organizations

Entities formed for a specific purpose, comprising of individuals working together under a defined structure to achieve common goals.

Culture

The sum of attitudes, customs, and beliefs that distinguishes one group of people from another.

Shared Values

Fundamental beliefs or principles that are held in common by a group, organization, or community, facilitating cohesion and cooperative action.

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.