Economies of scale in the production of a good implies that:
A) the long-run average cost of production rises as the scale of operation expands.
B) the marginal cost of production falls below zero as the scale of operation contracts.
C) the long-run average cost of production falls as the scale of operation expands.
D) the long-run average cost of production remains the same as the scale of operation increases.
E) the marginal output decreases as the amount of a factor of production is incrementally increased.
Correct Answer:
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