Which of the Following Could Be True About a Firm

question 124

Multiple Choice

Which of the following could be true about a firm that is on the flat portion of its long-run ATC curve?

• A)It is experiencing constant returns to scale.
• B)Changing its firm size will not affect its total cost per unit.
• C)It is capturing the lowest average total costs possible in the industry.
• D)All of these are correct.

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Definitions:

Environmental Law

All state and federal laws or regulations enacted or issued to protect the environment and preserve environmental resources.

Administrative Agencies

Governmental bodies responsible for executing and enforcing laws and regulations.

Law Firms

Professional business organizations composed of lawyers who engage in the practice of law.

Corporations

Organizations that exist independently from their proprietors, with the ability to possess assets, engage in agreements, and face litigation.