Constant Returns to Scale for a Firm Would Imply That

question 189

Multiple Choice

Constant returns to scale for a firm would imply that

• A)doubling input usage results in more than double the output.
• B)doubling input usage results in less than double the output.
• C)doubling input usage results in doubling the output.
• D)there are decreasing costs per unit of output.

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Definitions:

Exponential Smoothing

A time series forecasting method for univariate data that applies weighted averages of past observations, giving more weight to recent observations.

Long-term Trend

The persistent movement or direction in data over a long period, revealing a general pattern of change.

Short-term Predictions

Forecasts made over a relatively short period, typically focusing on immediate or near-future trends or events.

Cyclical Variation

Periodic fluctuations in data or trends that happen over longer time intervals and are often related to economic, environmental, or societal cycles.