When a Firm Experiences Constant Returns to Scale

question 262

Multiple Choice

When a firm experiences constant returns to scale,

• A)long-run average total cost is unchanged, even when output increases.
• B)long-run marginal cost is greater than long-run average total cost.
• C)long-run marginal cost is less than long-run average total cost.
• D)the firm is likely to experience coordination problems.

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