Long-run economies of scale exist when the long-run average cost curve: rises. remains constant. falls. does not exist.
Added by Veronica A.
Close
Step 1
This means that as a firm increases its scale of production, its average cost per unit of output decreases. This can be due to factors such as specialization, efficient use of resources, and increased bargaining power with suppliers. Show more…
Show all steps
Your feedback will help us improve your experience
Jennifer Stoner and 54 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Economies of scale exist whenever: Select one: a. Average total costs decline as output increases. b. Average total costs increase as output increases. c. Average total costs are stationary as output increases. d. Average total costs increase as output increases and average total costs are stationary as output increases.
Jennifer S.
Average cost contains both fixed and variable costs, but marginal costs are only variable costs. Therefore marginal cost must always be less than average cost. Right? Explain.
14.The costs incurred even when no output is produced are called Fixed cost Average total cost Marginal cost Variable cost
Jainendra K.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD