For a Constant-Returns-To-Scale Production Function

question 8

Multiple Choice

For a constant-returns-to-scale production function,

• A)marginal costs are constant but the average cost curve has a U-shape.
• B)both average and marginal costs are constant.
• C)marginal cost has a U-shape; average costs are constant.
• D)both average and marginal cost curves are U-shaped.

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Perceptual Defence

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Fundamental Attribution Error

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