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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Definitions:

Macrosociology

A branch of sociology focused on the study of social systems and populations on a large scale, encompassing the analysis of societal structures, institutions, and processes.

Large-Scale

Pertaining to events, processes, or phenomena that involve extensive scope or size, often impacting broad areas or large numbers of people.

Social Structures

The complex framework of societal institutions (such as the economy, politics, and social norms) and the relationships between these entities that shape a society's organization.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, transforming economies from agrarian to industrial.