If a Firm Experiences Constant Returns to the Variable Input

question 58

Multiple Choice

If a firm experiences constant returns to the variable input in the short run:

• A)marginal cost will be greater than average variable cost, but the two will become more equal as output increases.
• B)marginal cost will be less than average variable cost, but the two will become more equal as output increases.
• C)marginal cost will be greater than average variable cost, and the difference between the two will become larger as output increases.
• D)marginal cost and average variable cost will be equal over the range of output in question.

---

Definitions:

Evidence Of Usury

Evidence of usury involves documentation or proof that a lender charged an interest rate above the legal limit established by law, making a loan agreement illegal or subject to penalties.

Courts Require

This refers to the mandates or conditions that legal courts demand or need for proceedings, evidence, or actions within their jurisdictions.

Public Policy

The principles and standards regarded by the legislature or by courts as being of fundamental concern to the state and the whole of society.

Void Agreement

A contract or agreement that is null and has no legal effect from the beginning due to illegal terms or conditions violating legal statutes.