Benchmarking Is the Age-Old Practice of Allowing the Artisan to Sign

question 149

True/False

Benchmarking is the age-old practice of allowing the artisan to sign his name to the finished product.

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Definitions:

Constant Returns To Scale

A condition where increasing all inputs by any proportion results in output increasing by that same proportion, indicating that size does not affect productivity.

Long-Run Average Total Cost

The cost per unit of output incurred when all factors of production are variable, and scale of production can be changed.

Output

The amount of products or services produced by a company, industry, or economic system.

Total Fixed Cost

The sum of all costs that do not change with output level, including rent, salaries, and insurance.