Economies of scale are present when:
a) average cost rises as input increases.
b) the LRAC curve is horizontal.
c) total fixed cost increases.
d) average total cost remains constant as input increases.
e) the LRAC curve slopes downward.
Ans: e) the LRAC curve slopes downward.
Economics
You might also like to view...
In the figure above, if the quantity is restricted to 2, then the deadweight loss in this market equals
A) b + g. B) c + d. C) e + k. D) h + i.
Economics
The government should subsidize the production of goods which generate a positive externality
a. True b. False Indicate whether the statement is true or false
Economics