Constant returns to scale indicate that a firm is experiencing:
a. per unit costs of production that are decreasing as the scale of output expands.
b. per unit costs of production that remain stable as the scale of output expands.
c. per unit costs of production that are increasing as the scale of output expands
d. an increasing marginal product.
Question 2
An investor who wants to diversify his portfolio will buy only bonds when both stocks and bonds are expected to yield better returns.
a. True
b. False
Indicate whether the statement is true or false
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