For many firms the LRAC curve is U-shaped.The downward-sloping portion of the LRAC curve can be explained by
A)economies of scale.
B)the spreading of overhead.
C)both A and B.
D)declining prices of the fixed factor.
E)decreasing short-run marginal cost.

Question

Quizplus · Accepted Answer

The Answer of For many firms the LRAC curve is U-shaped.The downward-sloping portion of the LRAC curve can be explained by
A)economies of scale.
B)the spreading of overhead.
C)both A and B.
D)declining prices of the fixed factor.
E)decreasing short-run marginal cost.

For Many Firms the LRAC Curve Is U-Shaped