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

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