
If economies of scale are relatively important in an industry, the typical firm's
A) marginal cost curve will decline continuously until it reaches minimum efficient scale.
B) long-run average cost curve will begin rising before it reaches minimum efficient scale.
C) long-run average cost curve will reach a minimum at a level of output that leaves room for a large number of firms to enter the industry.
D) long-run average cost curve will reach a minimum at a level of output that is a relatively large fraction of total industry sales.
Correct Answer:
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