Each unit increase in output increases cost by the same amount as resource prices are determined elsewhere.

Name: Each unit increase in output increases cost by the same amount as resource prices are determined elsewhere.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement assumes constant returns to scale and ignores the possibility of increasing or decreasing returns to scale, as well as the potential for resource prices to change due to factors like supply and demand fluctuations.

Each Unit Increase in Output Increases Cost by the Same