Constant Returns to Scale Exist When Long-Run Average Costs

question 140

Multiple Choice

Constant returns to scale exist when long-run average costs:

• A) increase as output is increased.
• B) decrease as output is increased.
• C) remain constant as output is increased.
• D) None of the statements is correct.

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Definitions:

Solution

The value or values that satisfy an equation or inequality.

Elementary Row Operation

A procedure used in matrix algebra involving row swapping, row multiplication, or row addition, aimed at simplifying matrices or solving systems of linear equations.

Matrix

A rectangular array of numbers, symbols, or expressions, arranged in rows and columns that is used in mathematics to solve systems of linear equations and perform various algebraic operations.

Matrix

A structured arrangement of numbers, symbols, or expressions in columns and rows used to represent and solve linear equations, among other applications.