Which of the following is true in the typical firm if economies of scale are relatively important in an industry?

Question

Quizplus · Accepted Answer

If economies of scale are relatively important in an industry, firms will see a substantial increase in efficiency with increasing output, which typically leads to a downward sloping long-run average cost curve. The long-run average cost curve will reach its minimum at the level of output where the economies of scale have been fully utilized, which is often a large fraction of total industry sales. Thus, choice D is the correct answer.

Which of the Following Is True in the Typical Firm