Economies of scale refer to
A)the minimum point on the short-run average total cost curve.
B)the flat portion of the long-run average total cost curve.
C)a decrease in the long-run average total cost of production as output increases.
D)a and b
E)none of the above

Question

Quizplus · Accepted Answer

Economies of scale occur when the long-run average total cost of production decreases as the output increases, leading to more efficient production as the scale of operation grows.

Economies of Scale Refer to