The negatively-sloped part of the long-run average total cost curve is due to which of the following?
A)Diseconomies of scale.
B)Diminishing returns.
C)The difficulties encountered in coordinating the many activities of a large firm.
D)The increase in productivity that results from specialization.

Question

Quizplus · Accepted Answer

The negatively-sloped part of the long-run average total cost curve reflects economies of scale, where increasing production leads to lower average costs due to factors like increased specialization.

The Negatively-Sloped Part of the Long-Run Average Total Cost Curve