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:

SST

Total Sum of Squares, an overall measure of the variation within a dataset relative to a mean value.

Least Squares Estimate

A method of estimating the parameters in a statistical model by minimizing the sum of squared differences between observed and predicted values.

Slope

The measure of the steepness or incline of a line, often calculated as rise over run in the coordinate plane.

Dependent Variable

A variable in an experiment or study whose changes are determined by the presence or variation of one or more independent variables.