If a firm experiences constant returns to scale throughout:

a. the long-run average-total-cost curve is negatively sloped.
b. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their positively sloped portion.
c. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at their minimum points.
d. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their negatively sloped portion.
e. the long-run average-total-cost curve is positively sloped.


c

Economics

You might also like to view...

A monopoly is a firm that produces a good or service for which no close substitute exists

Indicate whether the statement is true or false

Economics

In recent years, more than one quarter of federal government spending went to Social Security and income security programs

a. True b. False Indicate whether the statement is true or false

Economics

Monopolies can misallocate resources by restricting output in an attempt to raise prices and profits

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following is the unifying issue of economics?

a. income b. opportunities c. resources d. choices

Economics