In the long run, when average total cost does not depend on the quantity of output, a firm experiences:

Question

Quizplus · Accepted Answer

When average total cost does not depend on the quantity of output, it means that the cost per unit is the same regardless of the quantity produced. This situation is referred to as constant returns to scale, indicating that increasing the scale of production neither decreases nor increases the average cost per unit.

In the Long Run, When Average Total Cost Does Not