-In the above figure, the long-run cost curve between points C and D illustrates
A) diseconomies of scale.
B) diminishing marginal product.
C) constant returns to scale.
D) economies of scale.

Question

-In the above figure, the long-run cost curve between points C and D illustrates
A) diseconomies of scale. 
B) diminishing marginal product. 
C) constant returns to scale. 
D) economies of scale.

Quizplus · Accepted Answer

Between points C and D, the long-run cost curve is flat, indicating that costs remain constant as output increases, which is characteristic of constant returns to scale.

-In the Above Figure, the Long-Run Cost Curve Between Points