Constant Returns to Scale Indicate That a Firm Is Experiencing

question 159

Multiple Choice

Constant returns to scale indicate that a firm is experiencing:

• A) per unit costs of production that are decreasing as the scale of output expands.
• B) per unit costs of production that remain stable as the scale of output expands.
• C) per unit costs of production that are increasing as the scale of output expands.
• D) an increasing marginal product.