Hubert owns a scooter store.Last year his average cost of selling a scooter was $1,000.If he expands the size of his store this year and sees his average cost remain the same,his long-run average total cost curve should be

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If Hubert expands the size of his store and his average cost of selling a scooter remains the same, it means he is achieving economies of scale. This would cause his long-run average total cost curve to be horizontal, indicating that he can produce more units without experiencing an increase in average cost. This is because fixed costs are spread over a larger number of units, leading to lower average costs.

Hubert Owns a Scooter Store