If a firm experiences constant returns to scale throughout? a. the long-run aver

ID: 1223774 • Letter: I

Question

If a firm experiences constant returns to scale throughout?

a. the long-run average-total-cost curve is positively sloped.

b. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at their minimum points.

c. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their positively sloped portion.

d. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their negatively sloped portion.

e. the long-run average-total-cost curve is negatively sloped.

b. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at their minimum points.

The property whereby long-run average total cost stays the same as the quantity of output changes is called constant returns to scale

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