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:

CNS

The central nervous system, consisting of the brain and spinal cord, which processes and sends out nerve signals.

Somatic Nervous System

A section of the peripheral nervous system responsible for managing the intentional movement of the body by regulating skeletal muscles.

Eyeblink

A rapid closing and opening of the eyelid, which serves as a protective reflex to remove irritants from the surface of the eye or shield it from bright lights or approaching objects.

Cerebellum

The part of the brain that controls muscular coordination and equilibrium.