If the Firms in a Market Have Constant Returns to Scale

question 20

Multiple Choice

If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry,a firm's long- run supply curve will be _ and the long- run market supply curve will be .

• A)horizontal; downward sloping
• B)upward sloping; downward sloping
• C)downward sloping; downward sloping
• D)upward sloping; horizontal
• E)downward sloping; horizontal

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Definitions:

Implement

To put into effect or action a plan, idea, or policy.

Long-Range Plan

A detailed roadmap designed by an organization to guide its direction, actions, and decisions over a period of years, focusing on achieving strategic goals.

Functional Plan

A strategic action plan for a specific department focusing on its unique objectives and methods.

Strategic Plans

Defining organizational goals, devising action plans, and allocating resources to meet long-term objectives.