When a Firm's Long-Run Average Cost Curve Is Horizontal for a Range

question 251

Multiple Choice

When a firm's long-run average cost curve is horizontal for a range of output, then that range of production displays

• A)increasing returns to scale.
• B)constant returns to scale.
• C)decreasing returns to scale.
• D)constant average fixed costs.

---

Definitions:

Statutory Law

Laws established by legislative bodies such as Congress or Parliament.

Mediation

A conflict resolution process involving a neutral third party who helps disputing parties find a mutually acceptable solution.

Third Party

An entity that is involved in a transaction but is not one of the principal parties, often providing an intermediary service or additional perspective.

Settlement

An agreement reached by parties in a dispute, often legally binding, to resolve issues without further litigation.