If There Are Constant Returns to Scale in an Industry

question 13

True/False

If there are constant returns to scale in an industry, then in competitive equilibrium, profits in that industry must necessarily be zero.

---

Definitions:

Wastewater Treatment

The process of removing contaminants from wastewater, primarily from household sewage and industrial waste, to produce water that is safe to release into the environment.

McGregor's Theory

A concept in management theory, divided into Theory X and Theory Y, that describes two contrasting views of workforce motivation and behavior.

Expectancy Theory

A motivational theory suggesting that individual motivation is influenced by the expectation of desired outcomes and the attractiveness of those outcomes.

Herzberg's Motivation-Maintenance Theory

A refined explanation of Herzberg's theory specifying motivation factors that inherently motivate employees and hygiene factors needed to prevent dissatisfaction.