The figure below shows short-run average total cost curves for a firm under four different production technologies. Assume that there are only four different technologies that the firm could use.

-Refer to the figure above.Between the output quantity QA and QC,the long-run average total cost curve of the firm exhibits ________.

Question

The figure below shows short-run average total cost curves for a firm under four different production technologies. Assume that there are only four different technologies that the firm could use.
 
-Refer to the figure above.Between the output quantity QA and QC,the long-run average total cost curve of the firm exhibits ________.

Quizplus · Accepted Answer

Economies of scale occur when an increase in output leads to a lower average cost, which is what the curve shows between QA and QC.

The Figure Below Shows Short-Run Average Total Cost Curves for a Firm