Varying plant sizes are shown graphically by

Question

Quizplus · Accepted Answer

The long-run average costs curve shows how the average cost of production varies as the size of a plant changes. As the plant size increases, the average cost initially decreases due to economies of scale but eventually reaches a point where further increases in plant size lead to diseconomies of scale, causing the average cost to increase. Therefore, the long-run average costs curve is the graphical representation of varying plant sizes.

Varying Plant Sizes Are Shown Graphically by