As a firm produces more and more DVDs, the average cost of producing each DVD falls. A curve showing the behavior of the average cost of a DVD as more DVDs are produced
A) would be positively and then negatively sloped.
B) would be positively sloped.
C) would be horizontal.
D) would be negatively sloped.

Question

Quizplus · Accepted Answer

The description matches the concept of economies of scale, where the average cost of production decreases as the quantity of output increases. This results in a negatively sloped curve, indicating that as more DVDs are produced, the average cost per DVD falls.

As a Firm Produces More and More DVDs, the Average