When a firm increases output and the costs rise disproportionately slower, then the long-run...
Question:
When a firm increases output and the costs rise disproportionately slower, then the long-run average cost curve is _____ and the firm is experiencing _____.
a. horizontal; constant returns to scale
b. downward sloping; constant returns to scale
c. upward sloping; diseconomies of scale
d. downward sloping; economies of scale
Total Cost:
The total cost of providing a particular amount of product is the primary company's value. In financial terms, total cost includes each factor of production's total chance expenditure as part of its fixed or variable expenses.
Answer and Explanation: 1
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View this answerThe correct option is d) downward sloping; economies of scale
When all data sources, including actual capital, are variable, the long-run average...
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Average Cost Vs. Total Cost: Making Production Decisions in the Short-Run
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Chapter 4 / Lesson 8
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Learn what the average cost of a firm is and how it differs from total cost. Understand the distinction between short run and long run average total cost.
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