How does economies of scale improve second-degree price discrimination?
A. Firms have increasing opportunity costs and therefore must sell more goods at higher prices to make up the extra costs.
B. ATC decreases and then increases which affects the cost to firms.
C. People have increasing marginal benefit as ATC decreases.
D. ATC decreases as output increases which allows a firm to charge lower prices at different output levels.
Answer: D
Economics
You might also like to view...
Marginal cost is the minimum price that producers must receive to induce them to produce another unit of a good or service
Indicate whether the statement is true or false
Economics
If a firm doesn't make an economic profit, it will shut down
Indicate whether the statement is true or false
Economics