A Firm Increases Its Output and Its Average Total Costs

question 177

Essay

A firm increases its output and its average total costs remain unchanged.Is the firm experiencing increasing returns to scale,constant returns to scale,or decreasing returns to scale?

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Definitions:

Know

To be aware of through observation, inquiry, or information; to have knowledge or information about.

They're

Contraction of "they are," used as a subject in a sentence to refer to multiple people or entities.

Than

A conjunction used in comparisons to highlight differences between two things.

Phantom Menace

A perceived threat or problem that either does not exist or is greatly exaggerated.