If a Firm Experiences Constant Returns to Scale Throughout

question 92

Multiple Choice

If a firm experiences constant returns to scale throughout:

• A)the long run average total cost curve is a negatively sloped curve.
• B)the short run average total cost curves are tangential to the long run average total cost curve at a point on their positively sloped portion.
• C)the short run average total cost curves are tangential to the long run average total cost curve at their minimum points.
• D)the short run average total cost curves are tangential to the long run average total cost curve at a point on their negatively sloped portion.
• E)the long run average total cost falls to zero.