If a firm experiences economies of scale,then,as output increases,
A)short-run total costs decline
B)long-run total costs rises proportionately more than output
C)short-run marginal cost must decline
D)long-run total cost rises proportionately less than output
E)demand increases

Question

Quizplus · Accepted Answer

Economies of scale occur when long-run total costs increase at a slower rate than output, meaning costs rise proportionately less than output as production expands.

If a Firm Experiences Economies of Scale,then,as Output Increases