If your firm is operating in the negatively sloped portion of a long-run average total cost curve,then your production exhibits:
A)higher wages.
B)increasing returns to scale.
C)decreasing returns to scale.
D)increased input prices.

Question

Quizplus · Accepted Answer

Operating in the negatively sloped portion of a long-run average total cost curve indicates increasing returns to scale, meaning output increases by a larger proportion than the increase in inputs.

If Your Firm Is Operating in the Negatively Sloped Portion