Economies and diseconomies of scale are the reasons short-run average total cost decreases and then increases.

Name: Economies and diseconomies of scale are the reasons short-run average total cost decreases and then increases.
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Question

Quizplus · Accepted Answer

Economies and diseconomies of scale explain the behavior of long-run average total costs, not short-run. In the short run, costs may vary due to factors like variable inputs and fixed capacity, not economies and diseconomies of scale.

Economies and Diseconomies of Scale Are the Reasons Short-Run Average