The slope of a long-run average total cost curve exhibiting decreasing returns to scale is:
A)zero.
B)infinite.
C)positive.
D)negative.

Question

Quizplus · Accepted Answer

The slope of a long-run average total cost curve exhibits decreasing returns to scale when the average total cost increases as the level of output increases. This suggests that there are inefficiencies in the production process as the firm expands. Therefore, the slope must be positive.

The Slope of a Long-Run Average Total Cost Curve Exhibiting