The Following Question Are Based on the Following Diagram of the Average

question 73

Multiple Choice

The following question are based on the following diagram of the average cost curves for three different-sized plants:

-If the long-run average cost curve were shown,it would indicate

• A) diminishing returns.
• B) decreasing returns to scale.
• C) constant returns to scale.
• D) increasing returns to scale.
• E) constant marginal cost.