Unit Costs Are Always Constant If

question 3

Multiple Choice

Unit costs are always constant if:

• A) input prices are constant.
• B) the total cost function is linear.
• C) constant returns to scale are operative.
• D) input prices are constant and the total cost function is linear.

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Definitions:

Social Cohesion

The bond that brings individuals together in a society, fostering a sense of belonging, mutual trust, and support.

Organic Solidarity

A form of social cohesion that arises when people in a society are interdependent, but hold to varying values and beliefs and engage in varying types of work.

Mechanical Solidarity

Unity based on similarity, not difference, of roles.

Role Differentiation

The process by which different roles develop in a society or group, often becoming more specialized and distinct.