-In the above figure, the long-run cost curve between points A and B illustrates
A) diseconomies of scale.
B) diminishing marginal product.
C) constant returns to scale.
D) economies of scale.

Question

-In the above figure, the long-run cost curve between points A and B illustrates
A) diseconomies of scale. 
B) diminishing marginal product. 
C) constant returns to scale. 
D) economies of scale.

Quizplus · Accepted Answer

The long-run cost curve between points A and B illustrates economies of scale, where increasing production leads to lower average costs.

-In the Above Figure, the Long-Run Cost Curve Between Points