Table 13-16
Listed in the table are the long-run total costs for three different firms.

-Refer to Table 13-16.Firm A is experiencing constant returns to scale.

Question

Table 13-16
Listed in the table are the long-run total costs for three different firms.
 
-Refer to Table 13-16.Firm A is experiencing constant returns to scale.

Quizplus · Accepted Answer

Constant returns to scale occur when a firm's output increases by the same proportion as the increase in inputs. Without specific data from Table 13-16, we cannot determine if Firm A is experiencing constant returns to scale.

Table 13-16 Listed in the Table Are the Long-Run Total Costs for Costs