For Constant Returns to Scale, A(n) ________ in a Firm's

question 231

Multiple Choice

For constant returns to scale, a(n) ________ in a firm's scale of production leads to ________ average total cost.

• A) increase; lower
• B) increase; higher
• C) decrease; a change in
• D) decrease; no change in

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Definitions:

Probability

An indicator of an event's occurrence probability, given as a value from 0 to 1.

Disjunction

A logical operation that forms a compound statement from two statements, true if at least one of the statements is true.

Mutually Exclusive

Two or more events that cannot occur at the same time.

Compatible

Two events are compatible if they could both occur.