When an increase in the firm's output reduces its long-run average total cost,it achieves _____ scale.
A)economies of
B)diseconomies of
C)constant returns to
D)variable returns to

Question

Quizplus · Accepted Answer

Economies of scale occur when a firm's long-run average total cost decreases as it increases its output. This is typically due to factors like specialization, more efficient use of resources, and better bargaining power with suppliers.

When an Increase in the Firm's Output Reduces Its Long-Run