When a Firm's Long-Run Average Total Costs Do Not Vary

question 96

Multiple Choice

When a firm's long-run average total costs do not vary as output increases, the firm exhibits

• A)economies of scale.
• B)constant returns to scale.
• C)diseconomies of scale.
• D)an efficient use of resources.

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Definitions:

Troy Oz.

A unit of measurement used for precious metals, approximately equal to 31.1035 grams.

Mutual Trust

The shared belief between individuals or groups that each will act in the best interests of the others, essential for effective collaboration and team dynamics.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals effectively and efficiently.

Employee

An individual hired by a company or organization to perform specific duties in exchange for compensation.