Constant returns to scale cause the long-run average cost curve to be:

A. horizontal.
B. vertical.
C. upward-sloping.
D. downward-sloping.

Answer: A

Economics

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Despite the warning on a package of cigarettes about the potential health hazards of smoking, a man lights up a cigarette. An economist would conclude that: a. in the man's judgment, the expected marginal cost of smoking the cigarette outweighs the expected marginal benefit. b. the man is behaving irrationally

c. the smoker is unconcerned about his future health. d. in the man's judgment, the expected marginal benefit of smoking the cigarette outweighs the expected marginal cost.

Economics

In the long run,  

A. the total revenue curve will change its slope. B. the firm will operate at point C. C. the firm will operate at point B. D. the firm will operate at point D.

Economics