The Construct of a Representative Firm Is Most Helpful in Describing

Multiple Choice

The construct of a representative firm is most helpful in describing the behaviour of all of the firms in the economy when

A) there are constant returns to scale.
B) there are increasing returns to scale.
C) there are decreasing returns to scale.
D) the marginal product of labour is increasing in the amount of labour input.
E) the marginal product of labour is decreasing in the amount of labour input.