For constant returns to scale, a(n) ________ in a firm's scale of production leads to ________ average total cost.
A) increase; lower
B) increase; higher
C) decrease; a change in
D) decrease; no change in

Question

Quizplus · Accepted Answer

For constant returns to scale, a decrease in a firm's scale of production leads to no change in average total cost, as costs change proportionally with output.

For Constant Returns to Scale, A(n) ________ in a Firm's