An increase in a firm's scale of production leads to no change in average total cost as long as there are
A) economies of scale.
B) diseconomies of scale.
C) negative returns to scale.
D) constant returns to scale.

Question

Quizplus · Accepted Answer

Constant returns to scale occur when an increase in a firm's scale of production leads to no change in average total cost, meaning that the firm's productivity and cost efficiency remain unchanged as it expands.

An Increase in a Firm's Scale of Production Leads to No