Constant Returns to Scale Refers to Returns That Occur When

question 62

Multiple Choice

Constant returns to scale refers to returns that occur when:

• A)an increase in the quantity of output decreases average total cost in the long run.
• B)an increase in the quantity of output increases average total cost in the long run.
• C)average total cost does not depend on the quantity of output in the long run.
• D)None of these is true.

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