Constant Returns to Scale Refers to When

question 138

Multiple Choice

Constant returns to scale refers to 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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Definitions:

Major Source of Energy

Typically refers to carbohydrates, fats, and proteins in the diet, which are essential for providing the body with the necessary fuel to maintain its functions.

Glucose

An essential energy-providing sugar in living entities, also making up a significant part of various carbohydrates.

Appetite Hormone

Hormones like ghrelin and leptin that regulate hunger and satiety signals in the body.

Controls Blood Glucose

Processes or mechanisms that regulate the concentration of glucose in the blood, important for maintaining metabolic homeostasis.