If a firm experiences constant returns to the variable input in the short run: Group of answer choices marginal cost and average variable cost will be equal over the range of output in question. marginal cost will be greater than average variable cost, but the two will become more equal as output increases. marginal cost will be greater than average variable cost, and the difference between the two will become larger as output increases. marginal cost will be less than average variable cost, but the two will become more equal as output increases.

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?