Question: What does the term constant returns to scale mean on the Long-Run Average Total Cost? A. The Long-Run Average Cost Curve is shifting up. B.

What does the term "constant returns to scale" mean on the Long-Run Average Total Cost?

A. The Long-Run Average Cost Curve is shifting up.

B. The business is operating at the low-end flat range of the Long Run Average Total Cost curve and your costs are not rising as you increase production.

C. You are getting a fixed rate of return on your financial investments.

D. The Long-Run Average Cost Curve is shifting down.

Step by Step Solution

★★★★★

3.36 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

What does the term cost principle mean?

What does the term contribution margin per unit mean? How is the contribution margin used in cost analysis to support managerial decisions?

What does the term reengineering mean? Name some reengineering practices.

Long-run constant returns to scale exist when the a. short-run average total cost curve is constant. b. long-run average cost curve rises. c. long-run average cost curve is flat. d. long-run average...

19. long-run constant returns to scale exist when the a. short-run average total cost curve is constant. b. long-run average cost curve rises. c. long-run average cost curve is flat. d. long-run...

The long-run constant returns to scale exist when: a the short-run average total cost curve is constant. b the costs of some inputs are constant. c the long-run fixed cost is constant. d the long-run...

What is used by operating system to manage all the files of the system? Administrator made some changes on the system hardware and wants to restart without doing manually. How it is possible?...

PART A ? Questions 1 ? 7 Consider a market where demand is D: P = 30 ? Q and supply is S: P = 0.5Q. Equilibrium quantity Qe is 17 18 19 20 Equilibrium is price Pe $10 $11 $12 $13 Consumer surplus CS...

Identify all of Cirque du Soleils main resources and capabilities based on the case notes and further research. Complete the analysis by (a) identifying and (b) rating its strategic assets and its...

How would I find the critical path activities? this is what I have so far. ADHIJK what else can I add to make this critical path justifiable?

Identify a true statement about basic and applied research. Multiple Cholce Applied research tries to answer fundamental questions about the nature of behavior there are practical problems and...

On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $36,000,000, a price reflecting an $8,000,000 goodwill premium. On December 31, 20Y9, The Simmons Group...

On January 1, 2009, Affordable Financial, Inc., purchased the assets of Bisko Insurance Co. for $65,000,000, a price reflecting a $10,000,000 goodwill premium. On December 31, 2012, Affordable...

For each of the following situations, indicate the amount of revenue that the government should recognize in an appropriate governmental fund as well as in its government-wide statement of activities...

The Excel file Cell Phone Survey reports opinions of a sample of consumers regarding the signal strength, value for the dollar, and customer service for their cell phone carriers. Use PivotTables to...

Westor Company lost all of its inventory in a fire on December 28, 2017. The accounting records showed the following gross profit data for November and December: Westor is fully insured for fire...

Should volunteers be treated as "unpaid professionals" with parity with paid staff in all other aspects

In upcoming chapters, we will often assume that the average cost curve is U-shaped. A: Indicate for each statement below whether you believe that the description of the firms situation would lead to...

Suppose that both consumption and leisure are always normal goods. Keep in mind the underlying cause for deadweight losses from wage-distoring taxation as you answer the questions below. A: Explain...

Mortgage Interest Deductibility, Land Values and the Equilibrium Rate of Return on Capital: In the text, we suggested that the property tax can be thought of in part as a tax on land and in part as a...

understand the matching hypothesis; and

describe how imagery works;

Discuss the term mental toughness. How does the research define this concept, how would you define it, and how would you develop it? Give specific examples. Discuss some special considerations for...