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.

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Definitions:

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, focusing on observable behaviors rather than internal states.

Habituation Technique

A method used in psychology to reduce the reaction to a repeated stimulus over time, demonstrating one of the simplest forms of learning.

Longitudinal Technique

A research design that involves repeated observations of the same variables over a period of time, often years or decades.

Novelty Technique

A method or strategy employed to capture interest or attention through the introduction of new or unusual elements.