A firm is said to enjoy economies of scale over the range of output for which the long-run average cost is
A) increasing.
B) constant.
C) decreasing.
D) stagnant.

Question

Quizplus · Accepted Answer

In a market where a firm enjoys economies of scale, the long-run average cost decreases as the output level increases. This means that as the firm produces more, it becomes more efficient and reduces its per-unit costs. Therefore, the best choice is C, decreasing.

A Firm Is Said to Enjoy Economies of Scale Over