"Constant returns to scale" describes a situation where:
a. expanding all inputs does not change the average cost of production.
b. a larger-scale firm can produce at a lower cost than a smaller-scale firm.
c. expanding all inputs changes the average cost of production.
d. the quantity of output rises and the average cost of production falls.
a. expanding all inputs does not change the average cost of production.
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If fewer families purchase health insurance because of rising health insurance premiums, then health insurance premiums are likely to rise further due to:
A. commitment problems. B. moral hazard. C. adverse selection. D. first-dollar coverage.
In the above table, the inflation rate between 2014 and 2015 is approximately
A) 10 percent. B) 11 percent. C) 121 percent. D) None of the above answers is correct.
People who hold bonds may tend to consume more out of their income than they should because they think they are wealthier than they really are
Indicate whether the statement is true or false
A U.S. publisher purchases new computers that were manufactured in the U.S. This purchase by itself makes
a. a positive contribution both to investment and to GDP. b. a positive contribution both to consumption and to GDP. c. a positive contribution to GDP, but it does not affect investment or consumption. d. a positive contribution to investment, but it does not affect GDP.