-The long-run average cost curve may initially slope downward due to
A) decreasing average fixed costs.
B) increasing marginal returns.
C) economies of scale.
D) All of the above.

Question

-The long-run average cost curve may initially slope downward due to
A) decreasing average fixed costs. 
B) increasing marginal returns. 
C) economies of scale. 
D) All of the above.

Quizplus · Accepted Answer

The long-run average cost curve slopes downward initially due to economies of scale, where increased production leads to lower average costs.

-The Long-Run Average Cost Curve May Initially Slope Downward Due