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:

Carolus Linnaeus

A Swedish botanist, physician, and zoologist in the 18th century, who laid the foundations for the modern scheme of binomial nomenclature.

Natural Selection

The mechanism through which better-suited organisms to their surroundings are more likely to survive and yield a higher number of progeny.

Scientific Method

Making, testing, and evaluating hypotheses about the natural world.

Law Of Nature

Generalization that describes a consistent natural phenomenon but does not propose a mechanism.