Question

When economies of scale exist in an industry, a firm that produces a higher quantity of output will be able to achieve Group of answer choices a decrease in output. a constant average cost of production. a monotonously increasing marginal return. a lower average cost of production.

Name: when economies of scale exist in an industry a firm that produces a higher quantity of output will be able to achieve group of answer choices a decrease in output a constant average cost of 53311
Uploaded: 2022-05-06T18:49:32-08:00
Duration: 4 min 6 s
Channel: Pavitr Ahuja
Description: when economies of scale exist in an industry a firm that produces a higher quantity of output will be able to achieve group of answer choices a decrease in output a constant average cost of 53311

          When economies of scale exist in an industry, a firm that produces a higher quantity of output will be able to achieve
Group of answer choices
a decrease in output.
a constant average cost of production.
a monotonously increasing marginal return.
a lower average cost of production.

Added by Jorge B.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Pavitr Ahuja

05/06/2022

Step 1

This is because the firm can spread its fixed costs over a larger quantity of output, leading to lower average costs. Show more…

Show all steps

Thanks for your feedback!

When economies of scale exist in an industry, a firm that produces a higher quantity of output will be able to achieve Group of answer choices a decrease in output. a constant average cost of production. a monotonously increasing marginal return. a lower average cost of production.