Economies of scale occur OA. when the marginal product of labor increases with output. OB. when a firm's long-run average costs decrease with output. OC. when a firm's long-run average costs increase with output. OD. when the marginal cost of production decreases with output. For which of the following reason(s) may firms experience economies of scale? OA. Firm's production may increase with a smaller proportional increase in at least one input. O B. Both managers and workers may become more specialized and hence more productive as output expands. O C. Large firms may be able to purchase inputs at lower costs than smaller competitors; they can also borrow money at a lower interest rate. OD. All of the above.

Economies of scale occur OA. when the marginal product of labor increases with output. OB. when a firm's long-run average costs decrease with output. OC. when a firm's long-run average costs increase with output. OD. when the marginal cost of production decreases with output. For which of the following reason(s) may firms experience economies of scale? OA. Firm's production may increase with a smaller proportional increase in at least one input. O B. Both managers and workers may become more specialized and hence more productive as output expands. O C. Large firms may be able to purchase inputs at lower costs than smaller competitors; they can also borrow money at a lower interest rate. OD. All of the above.