Constant Returns to Scale Are Defined as Long-Run Average Total

question 302

Multiple Choice

Constant returns to scale are defined as long-run average total costs that

• A) remain the same as production capacity increases.
• B) increase as production capacity increases.
• C) decrease as production capacity increases.
• D) decrease as a firm produces additional products.

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Definitions:

Accounts Payable

Liability accounts listing the amounts a company owes to suppliers for goods or services received on credit.

Salaries Payable

A liability account representing the amount of wages owed to employees for work performed but not yet paid.

Liability Account

A financial accounting term representing the debts or obligations of a company incurred during business operations.

Asset Account

An account on a company's balance sheet that represents the value of all assets that the company owns.