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:

Global Scale

Pertaining to or involving the entire world, emphasizing worldwide reach or impact.