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Which of the Following Is Most Likely an Example of Constant

Question 74

Multiple Choice

Which of the following is most likely an example of constant returns to scale?


A) The per-unit costs of Excel Publishing Company's manuals fell after a large order was received from the government.
B) Alpha-Beta Inc. raised its price 10 percent after a 5 percent increase in production costs.
C) Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant.
D) The XYZ Co. increased production 25 percent and experienced a 30 percent increase in its total cost.

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