Returns to Scale Is a Concept That Operates

question 90

Multiple Choice

Returns to scale is a concept that operates

• A) only in the short run.
• B) only in the long run.
• C) in both the long run and the short run.
• D) in either the long run or the short run but never both.

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Definitions:

Inelastic

A characteristic of demand or supply that shows a small response or change to variations in price levels.

Excise Tax

A tax levied on specific goods, services, and activities, such as alcohol, tobacco, and gasoline, often to discourage their use or generate revenue for a specific purpose.

Demand for Pumpkins

denotes the consumers' willingness and ability to purchase pumpkins at various prices, influenced by factors such as seasonality, price, and consumer preferences.

Supply Curve

A graphical representation showing how the quantity of goods supplied by producers changes in response to different price levels, typically sloping upwards.