If There Are Constant Returns to Scale in a Competitive

question 16

True/False

If there are constant returns to scale in a competitive industry, then the long-run industry supply curve for that industry is horizontal.

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Definitions:

Components

Elements or parts that combine to form a larger product or system.

Net Profit Margin Ratio

A profitability metric that shows the percentage of revenue that remains as net income after all expenses have been deducted.

Net Income

The total earnings of a company after accounting for all expenses and taxes, reflecting the company's profitability.

Operating Revenues

Income generated from the core business activities of a company.