When a Firm Is on the Flat Portion of Its

question 1

Multiple Choice

When a firm 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 true.

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Definitions:

Performance

The act of carrying out a task or function, often measured against known standards of accuracy, completeness, and speed.

Schedule Preference

Refers to an individual's or group's favorability towards certain times or periods for performing tasks or activities.

Motivation

The internal drive or external incentive that stimulates energy, direction, and persistence in behavior towards achieving specific goals.

Instrumentality

The perception that a certain level of effort will lead to a specific level of performance.