Table 13-20
Listed in the table are the long-run total costs for three different firms.
-Refer to Table 13-20. Firm B is experiencing constant returns to scale.

Question

Table 13-20
Listed in the table are the long-run total costs for three different firms. 
-Refer to Table 13-20. Firm B is experiencing constant returns to scale.

Quizplus · Accepted Answer

Since the long-run total cost increases proportionally with the increase in output, and the cost for producing 3 units is twice the cost for producing 1 unit, it indicates that firm B is experiencing constant returns to scale.

Table 13-20 Listed in the Table Are the Long-Run Total Costs for Costs