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Pachacha [2.7K]
3 years ago
7

If a firm enjoys economies of scale up to a certain output​ level, and cost then increases proportionally with​ output, what can

you say about the shape of the​ long-run average cost​ curve? The​ long-run average cost curve_________.
A. is decreasing.
B. is horizontal.
C. is increasing.
D. decreases initially and then is horizontal.
E. is​ U-shaped.
Business
1 answer:
Len [333]3 years ago
8 0

Answer:

D. decreases initially and then is horizontal.

Explanation:

A horizontal long run average cost curve reflects increase in cost proportionate to output, so the firm's long run average cost curve will fall initially and then become horizontal.

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