Constant Returns to Scale Occur When a Firm's

question 26

Multiple Choice

Constant returns to scale occur when a firm's

• A)marginal costs are constant as output increases.
• B)long-run average total costs are decreasing as output increases.
• C)long-run average total costs are increasing as output increases.
• D)long-run average total costs do not vary as output increases.

---

Definitions:

Prescribe

To recommend or dictate a specific course of action or treatment, often used in a medical context.

Legal Consequences

The potential legal penalties or effects that may follow from actions or violations of laws and regulations.

Order-Fill Rate

A metric that measures the efficiency of a company's inventory management by calculating the percentage of customer orders fulfilled from stock on hand.

Metropolitan Area

A densely populated urban core and its less populated surrounding territories, sharing industry, infrastructure, and housing.