When Do Constant Returns to Scale Occur

question 77

Multiple Choice

When do constant returns to scale occur

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

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Definitions:

Intended Third-party

Someone who, although not a direct participant in a contract or agreement, stands to benefit from the execution of the agreement.

Incidental Third-party

A person or entity indirectly involved or unintentionally benefited by a transaction or contract between two other parties.

Beneficiary

An individual or entity designated to receive benefits or assets from an insurance policy, will, or trust.

Third Party

An individual or entity separate from the two parties directly involved in a contract, agreement, or dispute.