Economies of scale, constant returns to scale and diseconomies of scale account for the shape of the __________ cost curve.
A)average variable
B)average fixed
C)long-run average total
D)short-run average total
E)marginal

Question

Quizplus · Accepted Answer

Economies of scale, constant returns to scale, and diseconomies of scale directly influence the shape of the long-run average total cost curve, reflecting how costs per unit of output change as the scale of production increases.

Economies of Scale, Constant Returns to Scale and Diseconomies of Scale