Constant Returns to Scale Occur When the Firm's Long-Run

question 14

Multiple Choice

Constant returns to scale occur when the firm's long-run

• A)total costs are constant as output increases.
• B)average total costs are constant as output increases.
• C)average cost curve is falling as output increases.
• D)average cost curve is rising as output increases.

---

Definitions:

Federal Court

A court established by the authority of a federal government that deals with problems between states, the constitution, and laws made by Congress, as opposed to state courts.

Breeding Fees

Charges paid for the service of breeding animals, typically involving purebred animals in agricultural or sporting contexts.

Civil Litigation

The process of resolving private disputes through the court system, as opposed to criminal proceedings.

Company Parking Lot

A designated area where employees and visitors can park their vehicles while at a business premises.