In the long run, firms in many industries often experience a falling average total cost curve as a result of:
A) gains through trade.
B) increasing marginal returns.
C) economies of scale.
D) lower fixed costs.

Question

Quizplus · Accepted Answer

In the long run, firms can achieve economies of scale as they increase their output levels. This means that the average total cost of production can fall as fixed costs are spread over greater amounts of output, resulting in cost savings.

In the Long Run, Firms in Many Industries Often Experience