Firms in Long-Run Perfect Competition Produce at

question 43

Multiple Choice

Firms in long-run perfect competition produce at

• A) increasing returns to scale.
• B) decreasing returns to scale.
• C) constant returns to scale.
• D) no returns to scale.

---

Definitions:

Error Term

A variable in a statistical model that captures the difference between observed and predicted values.

Linear Relationship

A relationship between two variables where the change in one variable is directly proportional to the change in another.

Scatter Chart

A type of graph used to display values for two variables for a set of data, showing the relationship between them.

Variables

Features or characteristics that can take on different values in data collection and analysis.