Related to the Economics in Practice on page 195: If firms have long-run average cost curves with a long, flat section
A) their long run supply curves are downward sloping.
B) the optimal number of firms in the industry is one.
C) larger firms have a cost advantage over smaller firms.
D) it is impossible to predict the size of the firm.

Question

Quizplus · Accepted Answer

A long, flat section in the long-run average cost curve indicates constant returns to scale over a range of output, making it difficult to predict the optimal size of the firm.

Related to the Economics in Practice on Page 195: If