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.
Correct Answer:

Verified
Correct Answer:
Verified
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