Constant Returns to Scale Means That as All Inputs Are

question 215

Multiple Choice

Constant returns to scale means that as all inputs are increased

• A) total output remains constant.
• B) average total cost rises.
• C) average total cost rises at the same rate as do the inputs.
• D) total output increases in the same proportion as do the inputs.

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Definitions:

Rights Offering

A financial opportunity offered to existing shareholders to purchase additional shares at a discounted price before the new shares are offered to the public.

Rights Offering

An opportunity given to existing shareholders to purchase additional shares of the company's stock, often at a discount, before it is offered to the public.

Subscription Price

The cost at which existing shareholders can purchase additional shares before they are offered to the public, typically during a rights offering.

Stock Price

The cost of purchasing a share of a company in the stock market, which fluctuates based on supply and demand dynamics.