Question

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

Answer 1

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

What is LRATC?

• 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:

brainly.com/question/14316066

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