When Returns to Scale Are Constant, Long Run Marginal Cost

question 1

Multiple Choice

When returns to scale are constant, long run marginal cost is:

• A)horizontal.
• B)greater than long run average cost.
• C)less than long run average cost.
• D)equal to long run average cost.

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Definitions:

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The act of forecasting or determining the likelihood of future events or outcomes based on current or past data.

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A system of ideas intended to explain something, based on general principles independent of the thing being explained.

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Information, understanding, or skill that a person acquires through experience or education.

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