When a firm increases output and that results in a decrease in the average total cost of producing a good, the firm is experiencing:

Name: When a firm increases output and that results in a decrease in the average total cost of producing a good, the firm is experiencing:
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Question

Quizplus · Accepted Answer

Economies of scale occur when increasing production leads to a lower average cost per unit. This is because fixed costs are spread over a larger number of goods, and variable costs may also benefit from efficiencies of scale.

When a Firm Increases Output and That Results in a Decrease