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.

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Definitions:

Homeostasis

Homeostasis is the process by which a living organism or cell maintains a stable internal environment despite changes in external conditions.

Staying The Same

Maintaining an unchanged state or position over a period of time.

Motivational Dynamics

The study of the forces and processes that drive individuals to behave in certain ways, often focusing on the interplay between different motivations.

Drive-Reduction Theory

A psychological theory that posits that motivation arises from the desire to reduce an uncomfortable state of tension caused by unmet needs.