Economies of scale exist
A) only for monopolists.
B) when long-run average total costs increase.
C) when long-run average total costs decrease.
D) when long-run average total costs are constant.
E) when governments create barriers to entry.

Question

Quizplus · Accepted Answer

Economies of scale occur when long-run average total costs decrease as production increases. This can happen due to factors such as specialization, better utilization of resources, and increased bargaining power with suppliers. It is not limited to monopolies or dependent on government intervention.

Economies of Scale Exist