If a Firm Experiences Constant Returns to Scale at All

question 145

Multiple Choice

If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would

• A)slope downward.
• B)be horizontal.
• C)slope upward.
• D)slope downward for low output levels and upward for high output levels.

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Definitions:

Time Wages

Compensation paid to an employee based on the amount of time worked, typically expressed as an hourly rate.