When a Firm Is Experiencing Constant Returns to Scale, It

question 202

Multiple Choice

When a firm is experiencing constant returns to scale, it follows that

• A)unit costs are rising.
• B)average total cost is rising.
• C)unit costs are constant.
• D)long-run average total cost is constant.

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Definitions:

Conservation

The principle that physical properties of objects, such as volume and mass, remain constant despite changes in their form or appearance.

Seriation

The cognitive ability to organize objects or items in a logical order, such as by size, number, or volume, essential in early childhood development.

Transitivity

In mathematics and logic, transitivity is a property of binary relations that if an element A is related to B, and B is related to C, then A is also related to C.

Mainstreaming

The educational practice of integrating children with special needs into standard classrooms and activities as much as possible.