QUESTION 22 As the accounting industry expands, the demand for certified public accountants (CPA) also increases, which causes the salaries of CPAS to Increase. This is an example of constant returns to scale. economies of scale Increasing marginal returns. dioeconomies of scale QUESTION 23 For a perfectly competitive industry, diminishing marginal returns occur in both the short run and in the long run. occur only in the short run. occur only in the long run Diminishing marginal returns do not occur in perfectly competitive Industrien QUESTION 24 11 a firm would operate in the short run and expand in the long run. TRA TC ATC > AVC AVC > AFC | IC5 TR QUESTION 25 Click Save and Submit to save and submit. Click Save All Answers to save all answers