The term "constant returns to scale" describes a situation where expanding all inputs dramatically increases the average cost of production. O the quantity of output rises and the average cost of production falls. O expanding all inputs does not much change the average cost of production. O firms are necessarily earning negative economic profits.
The term "constant returns to scale" describes a situation where expanding all inputs dramatically increases the average cost of production. O the quantity of output rises and the average cost of production falls. O expanding all inputs does not much change the average cost of production. O firms are necessarily earning negative economic profits.
Chapter1: Making Economics Decisions
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![Question 15
1 pts
The term "constant returns to scale" describes a situation where
O expanding all inputs dramatically increases the average cost of production.
O the quantity of output rises and the average cost of production falls.
O expanding all inputs does not much change the average cost of production.
firms are necessarily earning negative economic profits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e3e82e4-a06d-46fe-af31-4292fccdd15b%2Fe6c01b97-aa36-4bc6-880a-e576feed7762%2F8miyiii_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 15
1 pts
The term "constant returns to scale" describes a situation where
O expanding all inputs dramatically increases the average cost of production.
O the quantity of output rises and the average cost of production falls.
O expanding all inputs does not much change the average cost of production.
firms are necessarily earning negative economic profits.
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