Which of the following is true if a firm has indivisible inputs?
A)The long-run average cost curve is downward sloping at lower levels of output.
B)The long-run fixed cost curve is downward sloping at lower levels of output.
C)The long-run total cost curve is downward sloping at lower levels of output.
D)The long-run marginal cost curve is downward sloping at lower levels of output.

Question

Quizplus · Accepted Answer

Indivisible inputs lead to economies of scale, causing the long-run average cost curve to slope downward as output increases, due to spreading fixed costs over more units.

Which of the Following Is True If a Firm Has