When a firm 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 possibly true.
Correct Answer:
Verified
Q132: A firm currently employs four workers in
Q133: The short run:
A) means the firm cannot
Q134: How long is the long run?
A) A
Q135: Costs that are "fixed":
A) depend on what
Q136: In the long run when average total
Q137: The marginal cost curve:
A) is U-shaped.
B) rises
Q138: A long-run ATC curve shows:
A) the minimum
Q139: The additional cost a firm will incur
Q140: Returns to scale describes the long-run relationship
Q141: When a firm is on the portion
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