Geoffrey owns a wedding dress store.If he increases the size of his store and experiences constant returns to scale as a result,his long-run average total cost curve should be

Question

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When a firm experiences constant returns to scale, its long-run average total cost curve will be horizontal because the cost per unit of output does not change as the firm expands its production. Therefore, increasing the size of Geoffrey's store should lead to a horizontal long-run average total cost curve.

Geoffrey Owns a Wedding Dress Store