Suppose a particular firm exhibits constant returns to scale as it increases its output overany reasonable range. If it increases its total costs by 10%, then its:O long run average cost curve will shift to the right by 10%O average total cost will increase by 10%%.O total cost will increase by less than 10%.O output will increase by 10%.21tvMacBook Pro80O00 FAFSF6F7F819

Returns to scale refers to proportional change in total cost in response to proportional change in…

Suppose a particular firm exhibits constant returns to scale as it increases its output over any reasonable range. If it increases its total costs by 10%, then its: long run average cost curve will shift to the right by 10% O average total cost will increase by 10%. O total cost will increase by less than 10%. O output will increase by 10%.

Suppose a particular firm exhibits constant returns to scale as it increases its output over any reasonable range. If it increases its total costs by 10%, then its: long run average cost curve will shift to the right by 10% O average total cost will increase by 10%. O total cost will increase by less than 10%. O output will increase by 10%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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