Use the following to answer question:
-(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from 0 to A.
A)diseconomies of scale
B)constant returns to scale
C)economies of scale
D)negative costs of production

Question

Use the following to answer question: 
-(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from 0 to A.
A)diseconomies of scale 
B)constant returns to scale 
C)economies of scale 
D)negative costs of production

Quizplus · Accepted Answer

In the output region from 0 to A, the long-run average cost curve is downward sloping, indicating economies of scale.

Use the Following to Answer Question