When Long-Run Average Total Cost Does Not Change as Output

question 24

True/False

When long-run average total cost does not change as output varies, firms experience constant returns to scale.

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Definitions:

Basic Concept

Fundamental ideas or principles that serve as the foundation for a subject or theory.

Mental Set

A psychological tendency to approach situations in a certain way due to past experiences and perceptions, which can sometimes hinder problem-solving.

Mental Image

A mental representation that mirrors or resembles the thing it represents; mental images occur in many and perhaps all sensory modalities.

Sensory Modalities

Different forms of sensory perceptions, such as sight, sound, touch, taste, and smell, through which we experience the world.