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

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

Quizplus · Accepted Answer

Firm B is experiencing constant returns to scale because its long-run total cost is proportional to output, indicating that increasing production by a certain factor leads to a proportional increase in total costs.

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