If a Firm Is Experiencing Constant Returns to Scale

question 44

Multiple Choice

If a firm is experiencing constant returns to scale

• A)long-run average total cost neither rises nor falls as production increases
• B)average fixed cost is zero
• C)the increase in average variable cost is exactly offset by a decrease in average fixed cost
• D)the decrease in average variable cost is exactly offset by an increase in average fixed cost
• E)long-run average total cost is zero.

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