Economies of scale imply: (i) a continuously falling AC curve or (ii) a larger output is more efficient than a smaller output.
A)i and ii
B)i but not ii
C)ii but not i
D)neither i nor ii

Question

Quizplus · Accepted Answer

Economies of scale imply both a continuously falling average cost (AC) curve as production increases (i) and that a larger output is more efficient than a smaller output (ii), as costs per unit decrease with increased production volume.

Economies of Scale Imply: (I) a Continuously Falling AC Curve