-When long-run average cost remains constant as output increases there are constant
A) marginal returns.
B) returns to scale.
C) economies of scale.
D) diseconomies of scale.

Question

-When long-run average cost remains constant as output increases there are constant
A) marginal returns. 
B) returns to scale. 
C) economies of scale. 
D) diseconomies of scale.

Quizplus · Accepted Answer

When long-run average cost remains constant as output increases, it indicates constant returns to scale, meaning the firm's output increases proportionally with the increase in inputs.

-When Long-Run Average Cost Remains Constant as Output Increases There