If a firm's production process exhibits economies of scale for all levels of output,then the firm's long-run average cost curve will be

Question

Quizplus · Accepted Answer

When a firm's production process exhibits economies of scale for all levels of output, it means that the cost per unit of output decreases as output expands. This will lead to a negatively sloped long-run average cost curve since the firm can reduce costs by increasing production.

If a Firm's Production Process Exhibits Economies of Scale for All