In the long run when average total cost does not depend on the quantity of output,this is called:

Question

Quizplus · Accepted Answer

When the average total cost does not vary with changes in the quantity of output, it implies that the firm is experiencing constant economies of scale. This means that the firm is able to produce goods or services more efficiently as it increases the scale of production, but there is no increase or decrease in the average cost per unit of output. Therefore, the best choice is C) constant economies of scale.

In the Long Run When Average Total Cost Does Not