If There Are Increasing Returns to Scale, Then Costs Per

question 68

True/False

If there are increasing returns to scale, then costs per unit of output decrease as you move downward and to the right along an isocost line.

---

Definitions:

Generating Sales

The process of creating revenue for a company through selling goods or services.

Fixed Assets

Durable, physical assets utilized in running a business, which are not foreseen to be cashed in or used up in the near term.

Research And Development

Actions associated with the development, launch, and enhancement of products and processes.

Operating Expenses

Costs associated with running a business's core operations on a daily basis, excluding the cost of goods sold.