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

Question

2 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] · Answer 1 · 2022-09-20T16:00:47+03:00

Len [333]2 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.

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

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