Which of the following could be true about a firm that is on the flat portion of its long-run ATC curve?
A) It is experiencing constant returns to scale.
B) Changing its firm size will not affect its total cost per unit.
C) It is capturing the lowest average total costs possible in the industry.
D) All of these are correct.
Correct Answer:
Verified
Q142: When a firm can achieve economies of
Q143: A long-run ATC curve shows:
A)the minimum average
Q144: In the long run, when average total
Q145: In the long run, when an increase
Q146: When a firm is on the portion
Q147: In the short run:
A)a firm cannot increase
Q149: To determine whether a firm is experiencing
Q150: Constant returns to scale occur when:
A)an increase
Q151: Economies of scale occur when:
A)an increase in
Q152: In the long run, when an increase
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