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If an industry's long-run average total cost curve has an extended range of constant returns to scale, this implies that

Question

If an industry's long-run average total cost curve has an extended range of constant returns to scale, this implies that
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Solution 1

If an industry's long-run average total cost curve has an extended range of constant returns to scale, this implies that the industry is experiencing constant costs over a wide range of output levels.

Here's a step-by-step explanation:

  1. The long-run average total cost curve (LRATC) is a curve t Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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Similar Questions

The short-run supply curve for a perfectly competitive firm is its A. marginal cost curve above the average variable cost curve. B. marginal cost curve above the average fixed cost curve. C. average variable cost curve above the marginal cost curve. D. average variable cost curve above the average total cost curve. E. average variable cost curve above the average fixed cost curve.

The lowest level of output at which the long-run average total cost is minimized is called minimum scale

Fill in the Blank QuestionFill in the blank question.A firm's long-run average total costs may decline over a wide range of output due to of scale.

A reduction in average unit cost as a result of an increase in scale of operations is called .

What type of cost does not change with the level of output in the short run?Average costVariable costFixed costMarginal cost

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