Long-run average total cost (Multiple Choices ) might have an upward-sloping segment that indicates dis-economies of scale has a minimum point at the firm's minimum efficient scale shows the minimum average total cost for each level of output that can be produced might have a downward-sloping segment that indicates economies of scale might have a flat portion that indicates a constant average cost over that range of output.
Long-run
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might have an upward-sloping segment that indicates dis-economies of scale |
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has a minimum point at the firm's minimum efficient scale |
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shows the minimum average total cost for each level of output that can be produced |
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might have a downward-sloping segment that indicates economies of scale |
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might have a flat portion that indicates a constant average cost over that range of output. |
Long run average total cost is the long run cost per unit.
Economies of scale refer to the situation where the firm’s cost of production is decreases as increase the output. This indicates the increasing returns to scale.
Diseconomies of scale refer to the situation where the firm’s total cost of production is increasing as output increases. This increases diminishing returns to scale.
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