The Horizontal Portion of the Long-Run Average Cost Curve Represents

question 74

True/False

The horizontal portion of the long-run average cost curve represents constant returns to scale.

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Definitions:

Construct Validity

The extent to which an assessment accurately gauges what it professes to evaluate.

Reliable

Pertains to the consistency of a measure or instrument; if the results are repeatable under the same conditions.

Valid

Refers to the extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Criterion Validity

Criterion validity refers to how well one measure predicts an outcome based on the criteria of another measure.