In a decreasing-cost industry, an increase in output will lead to

Name: In a decreasing-cost industry, an increase in output will lead to
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Question

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In a decreasing-cost industry, an increase in output leads to lower unit costs due to the availability of economies of scale. As output increases, fixed costs can be spread over a larger number of units, resulting in a lower average cost per unit. Therefore, there is a reduction in long-run per-unit costs.

In a Decreasing-Cost Industry, an Increase in Output Will Lead