A firm that is experiencing economies of scale has ______ returns to scale technology and a ______ average cost curve.
A) Increasing; positively-sloped
B) Increasing; negatively-sloped
C) Decreasing; positively-sloped
D) Decreasing; negatively-sloped

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing production leads to lower average costs, which corresponds to increasing returns to scale technology and a negatively-sloped average cost curve.

A Firm That Is Experiencing Economies of Scale Has ______