Declining cost industries
A) have upward rising AC curves.
B) have upward rising demand curves.
C) have ∩-shaped total costs.
D) have diseconomies of scale.
E) have marginal cost curves below their average cost curve.

Question

Quizplus · Accepted Answer

Declining cost industries have decreasing average cost curves, which implies that their marginal cost curves lie below the average cost curves. This is due to economies of scale, where production costs decrease as output increases.

Declining Cost Industries