When a firm's long-run average cost is constant as output increases, the firm is experiencing constant returns to scale.

Name: When a firm's long-run average cost is constant as output increases, the firm is experiencing constant returns to scale.
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Quizplus · Accepted Answer

Constant returns to scale occur when increasing the quantity of inputs leads to a proportional increase in output, resulting in constant long-run average costs.

When a Firm's Long-Run Average Cost Is Constant as Output