If the minimum points of all the possible short-run average total cost curves become successively lower as quantity of output increases, then:

Question

Quizplus · Accepted Answer

If the minimum points of all the possible short-run average total cost curves become successively lower as quantity of output increases, it indicates that the firm is experiencing economies of scale. This means that as the firm increases its output, its average costs are decreasing. This is a result of larger scale production and the ability to spread fixed costs over more units, leading to lower per-unit costs. Therefore, choice C is the best answer.

If the Minimum Points of All the Possible Short-Run Average