Most empirical studies show that firms' long-run average cost curves
A) are L-shaped.
B) are downward-sloping.
C) are upward-sloping.
D) are flat.

Name: Most empirical studies show that firms' long-run average cost curves A) are L-shaped. B) are downward-sloping. C) are upward-sloping. D) are flat.
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Question

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Most empirical studies suggest that firms' long-run average cost curves are L-shaped, indicating that costs decrease with increased production up to a point, after which they remain constant.

Most Empirical Studies Show That Firms' Long-Run Average Cost Curves