Constant returns to scale exist when long-run average costs:
A. decrease as output is increased.
B. increase as output is increased.
C. remain constant as output is increased.
D. None of the statements is correct.
Answer: C
Economics
You might also like to view...
If it's possible to eliminate the problems created by externalities, why do they persist?
A. The benefits of correcting the externalities generally exceed the costs. B. Correcting externalities would always reduce total surplus. C. It is difficult to measure external benefits and costs. D. None of these statements is true.
Economics
Refer to the information provided in Figure 4.5 below to answer the question(s) that follow.
Figure 4.5Refer to Figure 4.5. At the world price of $15 per CD-Rom drive, the United States imports ________ million CD-Rom drives.
A. 3 B. 6 C. 9 D. 12
Economics