Constant Returns to Scale Occur When

question 14

Multiple Choice

Constant returns to scale occur when:

• A)long-run average total costs are constant as output increases
• B)marginal product of labour is falling
• C)the firm's long-run average cost curve is falling as output increases
• D)the firm's long-run average cost curve is rising as output increases

---

Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise when the other party has reasonably relied on that promise to their detriment.

Unilateral Contracts

Agreements in which one party makes a promise in exchange for the other party's performance, not a promise in return.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise if the other party has reasonably relied on that promise to their detriment.

Revocation

The act of withdrawing, repealing, or cancelling a right, permission, or contract.