If Long-Run Costs Are Plotted on the Vertical Axis and Quantity

question 16

Multiple Choice

If long-run costs are plotted on the vertical axis and quantity of output plotted on the horizontal axis,a line that is perfectly horizontal implies:

• A)constant returns to scale.
• B)economies of scale.
• C)diseconomies of scale.
• D)inefficient use of capital.
• E)inefficient use of labor.

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Definitions:

Cash

A medium of exchange in the form of coins and banknotes; used to purchase goods or services.

Adjusted Collection Ratio

A financial metric indicating the effectiveness of a healthcare provider in collecting reimbursements and payments due.

Net Collection

The amount of money collected by a business or agency after subtracting any refunds, fees, or costs associated with collection.

Overhead Expense

Costs not directly tied to a specific product or service, such as rent, utilities, and administrative salaries.