When a Firm Is on the Flat Portion of Its

question 14

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 possibly true.

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Definitions:

Junction

A point where two or more circuit elements meet.

Currents

The flow of electric charge across a conductor or through an electrolyte, measured in amperes (A), essential in electrical and electronic circuits.

Superposition Theorem

The current in any branch of a circuit supplied by a multipower source can be determined by finding the current produced in a particular branch by each of the individual power sources acting alone.

Kirchhoff's Current Law

Kirchhoff's Current Law states that the total current entering a junction or node in an electrical circuit is equal to the total current leaving that junction, preserving the principle of charge conservation.