-In the above figure, the firm experiences constant returns to scale between output levels of A) zero and Q₁. B) Q₂ and Q₃. C) Q₃ and Q₄. D) any level greater than Q₄.

Question

Quizplus · Accepted Answer

Constant returns to scale occur when increasing the input results in a proportional increase in output, which is typically represented by a flat section on the long-run average cost curve.

-In the Above Figure, the Firm Experiences Constant Returns to Scale