When a Firm's Long-Run Average Total Costs Do Not Vary

question 96

Multiple Choice

When a firm's long-run average total costs do not vary as output increases, the firm exhibits

• A)economies of scale.
• B)constant returns to scale.
• C)diseconomies of scale.
• D)an efficient use of resources.

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Definitions:

Worldwide Exchange

The global trading of goods, services, and financial assets among countries, influenced by international agreements and economic policies.

Western Bias

The inclination to favor Western or Eurocentric perspectives, often at the expense of ignoring or undervaluing other viewpoints.

First World

A term originally used during the Cold War to describe industrialized capitalist countries in North America, Western Europe, and their allies.

Third World

A term originally used to describe countries that were not aligned with either the capitalist First World or the socialist Second World during the Cold War, now often referring to developing countries.