For most producing firms,
A)marginal cost rises as output is carried to a certain level, and then begins to decline.
B)total costs rise as output is carried to a certain level, and then begin to decline.
C)average total costs decline as output is carried to a certain level, and then begin to rise.
D)average total costs rise as output is carried to a certain level, and then begin to decline.

Question

Quizplus · Accepted Answer

For most producing firms, average total costs initially decline due to economies of scale, but after reaching a certain level of output, they begin to rise due to diseconomies of scale.

For Most Producing Firms