If economies of scale exist for a particular production relationship, long-run average costs will
A) rise.
B) fall.
C) first rise and then fall.
D) be unaffected since there is no direct relationship between the two.
Correct Answer:
Verified
Q111: If doubling the quantity of inputs more
Q206: Economies of scale
A)require inputs' MPP to fall
Q207: Figure 7-14 Q208: Constant returns to scale for a firm Q210: When economies of scale are present, Q212: If in some range of production, average Q213: If a firm has increasing returns to Q214: Economies of scale is another term for Q215: If a single large firm is able Q216: The long-run average cost curve
A)costs per
A)increasing
A)is a composite
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