Returns to Scale Is a Concept That Operates

question 90

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 but never both.

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Definitions:

Profit-Maximizing

A strategy or process in which a company aims to achieve the highest possible profit through adjusting variables like production levels, pricing, and product mix.

Output

Output refers to the quantity of goods or services produced by a firm or economy within a specified period.

Housing Development

Housing Development is the process of constructing a new residential area, which may include homes, apartments, and other infrastructure like parks and schools.

Profit-Maximizing

A strategy or process undertaken by a firm to yield the highest possible profit, often through adjusting output or pricing.