_____ Occur When Long-Run Average Total Cost Does Not Change

question 42

Multiple Choice

_____ occur when long-run average total cost does not change as output increases.

• A) Constant returns to scale
• B) Economies of scale
• C) Diseconomies of scale
• D) Minimum efficient scales

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Definitions:

Greenfield Operation

A greenfield operation involves a company starting a new venture from the ground up in a foreign country, rather than purchasing or partnering with an existing local company.

Subsidiary Company

A company that is owned or controlled by another company, which is referred to as the parent company.

Licensing

A business agreement in which one party allows another to use its brand, patent, or technology for a fee or royalty.

Turnkey Operations

A type of project that is constructed so that it can be sold to any buyer as a completed product or operation.