If the LRATC curve is falling, then Group of answer choices economies of scale are present. constant returns to scale are presen

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2 years ago

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t. diseconomies of scale are present.

1 answer:

Natali [406] · Answer 1 · 2023-02-09T23:07:23+03:00

If the LRATC curve is falling, economies of scale are present.

<h3>What is LRATC?</h3>

A business indicator known as long-run average total cost (LRATC) shows the average cost per unit of output over a lengthy period of time when all inputs are assumed to be erratic and the production scale is flexible.
The long-run average cost curve displays the long-run total cost of production at the lowest level of output.

Because businesses can adjust major parts of their operations, like factories, over a lengthy period of time to attain maximum efficiency, long-term unit costs are typically lower than short-term unit costs.
Identifying the lower boundaries of LRATC is a goal shared by investors and firm management.
If the LRATC curve is falling, economies of scale are present.

To learn more about LRTAC refer to:

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