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wlad13 [49]
3 years ago
14

The long-run average cost curve is typically _______________________. a) downward-sloping at first but then b) upward-sloping up

ward-sloping at first but then c) downward-sloping always d) downward-sloping always upward-sloping
Computers and Technology
1 answer:
mihalych1998 [28]3 years ago
4 0

Answer:

A. downward-sloping at first but then upward-sloping

Explanation:

The long-run average cost curve is typical "downward-sloping at first but then upward-sloping." This can be shown as the long-run average cost curve is graphically represented in a U shape.

The reason is that the long-run average cost of production initially falls as a result of increase returns to scale as output is increased, however, at some stage beyond this certain this, the long-run average cost of production rises because of decreasing returns of scale.

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