Firms taking advantage of ___________ accounts for the downward slope in the long-run average cost curve.

Question

Quizplus · Accepted Answer

Economies of scale lead to a downward slope in the long-run average cost curve as firms increase production and take advantage of cost-saving factors such as specialization, bulk purchasing, and efficient use of resources. This allows for a decrease in the cost per unit of production, contributing to greater profitability for the firm.

Firms Taking Advantage of ___________ Accounts for the Downward Slope