How do increasing returns to scale affect the shape of the long-run average cost curve?
What will be an ideal response?
When the firm faces increasing returns to scale, average costs per unit produced fall as the firm's scale of production rises. Thus, the long-run average cost curve would be downward sloping.
Economics
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The nominal interest rate for a consumer loan lasting from 2007 to 2008 is 8.5 percent and the real interest rate is 4.5 percent. If the consumer price index was 200 in 2007, what would the consumer price index value be in 2008?
a. 192 b. 208 c. 209 d. 217
Economics
"Government should not use price controls" is an example of:
A. Marshallian economics. B. normative economics. C. the art of economics. D. positive economics.
Economics