Which of the following is not a reason why firms experience economies of scale?

Business

1 answer:

kumpel [21]2 years ago

6 0

Answer:

The correct answer is letter "D": As output increases, the managers can begin to have difficulty coordinating the operations of their firms.

Explanation:

Economies of scale mean that production becomes more efficient as the number of goods being produced increases. In most cases, companies that achieve economies of scale lower the average cost of their products by increasing production. In economies of scale, the cost of each product can depend on the size of the industry or the size of an individual company. The larger the number of products being manufactured does not necessarily imply the most difficult the companies' operations become.

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Mars2501 [29]

The long run will see the supply curve of a completive firm changing to the b. portion of the marginal-cost curve that lies above the average-total-cost curve.

<h3>What is the long-run supply curve in a perfect competition?</h3>

In a perfect competition, a company will only produce goods and services at a level where the marginal cost curve is above the average total cost in the long run.

This means that the supply curve will be the marginal cost curve but only the portion of this curve that is above the long-run average total cost curve.

The reason for this is that in the long-run., all the costs in a perfectly competitive firm are considered variable and so they can afford to avoid supply mishaps in the short term.

In conclusion, option B is correct.

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likoan [24]

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soldier1979 [14.2K]

Answer:

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