A firm experiences _______ when its _______ downward as output increases.
A) economies of scale; long- run average cost curve slopes
B) diminishing marginal returns; long- run average cost curve slopes
C) diminishing marginal returns; average total cost curve shifts
D) diseconomies of scale; average total cost curve slopes

Question

Quizplus · Accepted Answer

Economies of scale occur when a firm's long-run average cost curve slopes downward as output increases, indicating that the firm becomes more efficient and the cost per unit of output decreases as the scale of production expands.

A Firm Experiences _______ When Its _______ Downward as Output

A Firm Experiences _ When Its _ Downward as Output