When long-run average total cost is constant as output increases,the firm has constant returns to scale.

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

When long-run average total cost is constant, it means that the cost per unit of output remains the same as output increases. This indicates that the firm is able to increase its production proportionately without any change in efficiency, resulting in constant returns to scale.

When Long-Run Average Total Cost Is Constant as Output Increases,the