A manufacturer of towels finds that his returns to scale are constant. Which of the following conclusions can be drawn?
a. The long-run total cost curve is horizontal.
b. The long-run average cost curve is horizontal.
c. The long-run total cost curve is downward sloping.
d. The long-run average cost curve is downward sloping.
B
Economics
You might also like to view...
How does a cut in interest rates that increases investment affect the quantity of real GDP demanded, the aggregate demand curve, real GDP, and the price level?
What will be an ideal response?
Economics
Experiments show that when real people play the ultimatum game, starting with $100,
a. Player A usually proposes giving Player B more than $50. b. Player B usually accepts Player A's proposal if Player A proposes giving Player B $30 or $40. c. players show themselves to be rational wealth-maximizers. d. Player B will usually demand an even split.
Economics