Constant returns to scale means that as all inputs are increased
A) total output remains constant.
B) average total cost rises.
C) average total cost rises at the same rate as do the inputs.
D) total output increases in the same proportion as do the inputs.
D
You might also like to view...
An increase in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the price of Treasury bonds, everything else held constant
A) increase; increase B) reduce; reduce C) reduce; increase D) increase; reduce
Which of the following is more liquid?
A. A house B. A rare painting C. A privately held company's stock D. A publicly held company's stock
If the Dow Jones Industrial Average is currently at 10,000 and the price of one stock included in the index increases by $10, the Dow Jones Industrial Average will:
A. increase by 10.0%. B. increase by 1.0%. C. increase by 0.1%. D. not change; it is a value-weighted index.
Full employment in the U.S. economy means that
A. The economy has reached the lowest level of unemployment compatible with price stability. B. Frictional unemployment has been reduced to zero. C. The total unemployment rate has been reduced to zero. D. Structural unemployment has reached its minimum as a result of increased spending, and the economy is moving toward the peak of the business cycle.