Asked by
Ankitha Subbaiah
on Nov 04, 2024Verified
An increase in a firm's scale of production leads to no change in average total cost as long as there are
A) economies of scale.
B) diseconomies of scale.
C) negative returns to scale.
D) constant returns to scale.
Constant Returns to Scale
A situation in production where increasing all inputs by a certain factor results in output increasing by the same factor.
Average Total Cost
The total cost divided by the quantity of output produced; it includes all variable and fixed costs.
- Understand the correlation between production scale and the configuration of long-run average cost curves.
Verified Answer
AL
Learning Objectives
- Understand the correlation between production scale and the configuration of long-run average cost curves.
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