The Table Given Below Shows the Average Total Cost of Production

question 14

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-If long-run costs are plotted on the vertical axis and the quantity of output is plotted on the horizontal axis, a line that is perfectly horizontal implies:

• A)constant returns to scale.
• B)economies of scale.
• C)diseconomies of scale.
• D)inefficient use of capital.
• E)inefficient use of labor.

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