In the long run, falling average cost curves over the relevant range of output lead to:
A)perfect competition.
B)zero total profit.
C)imperfect competition.
D)allocative efficiency.
E)any of the above.

Question

Quizplus · Accepted Answer

Falling average cost curves over the relevant range of output suggest economies of scale, which can lead to imperfect competition. This is because large firms with lower costs can dominate the market, making it difficult for new entrants to compete.

In the Long Run, Falling Average Cost Curves Over the Relevant