When a firm is experiencing economies of scale,the minimum point of the firm's short-run average total cost curve shifts down as it expands its scale of production.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages a company gains as it increases its output. These cost advantages result in a decrease in the firm's average total cost. As a result, the minimum point of the firm's short-run average total cost curve will shift down as it expands its scale of production. Therefore, the statement is true.

When a Firm Is Experiencing Economies of Scale,the Minimum Point