A decrease in the long-run average total cost as output increases is due to: a. declining...
Question:
A decrease in the long-run average total cost as output increases is due to:
a. declining average fixed costs.
b. the law of diminishing returns.
c. economies of scale.
d. externalities.
Units of Output:
In economics, the output units depict the firms' final products of the production process. These outputs are then brought and sold in the market. The cost of production and the total demand for the output determines the total units of output produced.
Answer and Explanation: 1
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View this answerThe correct option is c.) economies of scale.
Economies of scale signify when the average total cost of production reduces with the expansion of the...
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Economies of Scale: Definition, Benefits & Examples
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Chapter 3 / Lesson 41
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Explore the principle of economies of scale and delve into several real-world examples. Learn the formula for determining economies of scale as well as their types, benefits, inputs and the factors that influence them. Discern the limits of economies of scale and find out the difference between economies of scale and diseconomies of scale.
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