Constant returns to scale are associated with a:
A) horizontal long-run average cost curve.
B) horizontal short-run average cost curve.
C) downward-sloping long-run average cost curve.
D) downward-sloping short-run average cost curve.

Question

Quizplus · Accepted Answer

Constant returns to scale occur when increasing the scale of production does not change the average cost of production, resulting in a horizontal long-run average cost curve.

Constant Returns to Scale Are Associated with A