When long- run average cost remains constant as output increases there are constant
A) diseconomies of scale.
B) economies of scale.
C) returns to scale.
D) marginal returns.

Question

Quizplus · Accepted Answer

Constant returns to scale occur when increasing the inputs by a certain factor leads to an increase in output by the same factor, resulting in long-run average costs remaining constant as output increases.

When Long- Run Average Cost Remains Constant as Output Increases