In the long run, with an increase in the plant size, _____
A. the short-run average total cost curve shifts downward
B. the long-run average cost curve slopes downward
C. the short-run average total cost curve shifts downward if economies of scale exist
D. the average total cost of production rises
C The fall in the short-run average total cost means that the long-run average total cost decrease, which is the case when there are economies of scale.
You might also like to view...
Which of the following could potentially capture the value created in a market
a. Suppliers b. Industry rivals c. Buyers d. All of the above
The production possibilities curve:
A. shows all of those levels of production that are consistent with a stable price level. B. indicates that any combination of goods lying outside the curve is economically inefficient. C. is a frontier between all combinations of two goods that can be produced and those combinations that cannot be produced. D. shows all of those combinations of two goods that are most preferred by society.