If the minimum points of all the possible short-run average total cost curves become successively lower as quantity of output increases, then:
a. the firm should try to produce less output.
b. total fixed costs are constant along the LRAC curve.
c. there are economies of scale.
d. the firm is probably having significant management problems.
e. when output is doubled, total costs are doubled.
c
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The supply curve for a normal good always slopes downward because a rise in the price of a normal good almost always leads to an increase in the quantity supplied of that good
a. True b. False Indicate whether the statement is true or false
The diamond-water paradox is an example that shows that
A) necessities like water should have a higher price. B) marginal utility rather than total utility determines what people are willing to pay for a good. C) there are exceptions to the law of diminishing marginal utility. D) marginal utility can initially increase and then decrease.