If a Firm Is Experiencing Constant Returns to Scale, Then

question 3

Multiple Choice

If a firm is experiencing constant returns to scale, then the long-run average cost curve is

• A)falling.
• B)rising.
• C)horizontal.
• D)shifting

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Definitions:

Illegal

Actions or activities that are forbidden by law or statute.

Price Discriminate

The practice of charging different prices to different consumers for the same product or service, based on what the seller thinks the market can bear, rather than standard costs.

Monopolist

An entity with exclusive control over the supply of a particular good or service, setting prices without competition.

Pure Monopolist

A market structure where a single firm completely dominates the market, with no close substitutes for its product, allowing it to control prices.