Long-run economies of scale exist over the range of output for which the long-run average cost curve:

Question

Quizplus · Accepted Answer

The long-run average cost curve is falling when there are long-run economies of scale. This means that the cost per unit of output decreases as the quantity of output increases, indicating that there are efficiency gains due to factors such as specialization, technological advances, and better utilization of resources. Therefore, the best choice is B, which states that long-run economies of scale exist over the range of output for which the long-run average cost curve is falling.

Long-Run Economies of Scale Exist Over the Range of Output