Figure 7-14
-Of the long-run AC curves in Figure 7-14, which displays increasing returns to scale for all levels of output?
A)1
B)2
C)3

Name: Figure 7-14 -Of the long-run AC curves in Figure 7-14, which displays increasing returns to scale for all levels of output? A)1 B)2 C)3
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Question

Figure 7-14 
-Of the long-run AC curves in Figure 7-14, which displays increasing returns to scale for all levels of output?
A)1 
B)2 
C)3

Quizplus · Accepted Answer

Curve 1 displays increasing returns to scale for all levels of output because it consistently slopes downward, indicating that as output increases, the average cost of production decreases.

Figure 7-14 -Of the Long-Run AC Curves in Figure 7-14, Which Displays