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

Question

Quizplus · Accepted Answer

A firm experiences economies of scale when its long-run average cost curve slopes downward as output increases, indicating that the cost per unit decreases with increased production.

A Firm Experiences ________ When Its ________ Downward as Output

A Firm Experiences When Its Downward as Output