For a Firm,what Does "Constant Returns to Scale" Refer to

question 26

Multiple Choice

For a firm,what does "constant returns to scale" refer to

• A)Short-run average total cost changes at a constant rate as the quantity of output changes.
• B)Short-run average total cost does not change as the quantity of output changes.
• C)Long-run average total cost does not change as the quantity of output changes.
• D)Long-run average total cost changes at a constant rate as the quantity of output changes.

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Definitions:

Positioning Strategy

A marketing strategy that aims to establish a brand or product in a certain position within the minds of target consumers relative to competitors.

Points of Difference

Unique features or benefits of a product or service that set it apart from competitors in the eyes of consumers.

Competition Analysis

The process of identifying competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service.

Price Strategy

A plan or approach used by businesses to set and adjust prices of their products or services to maximize profitability and meet market demands.