A firm is experiencing ________ on the upward-sloping portion of a firm's long run average cost curve.
A) increasing returns to scale
B) constant returns to scale
C) decreasing returns to scale
D) diminishing marginal returns

Question

Quizplus · Accepted Answer

On the upward-sloping portion of a firm's long-run average cost curve, the firm experiences decreasing returns to scale, meaning that as the scale of production increases, the average cost of production also increases.

A Firm Is Experiencing ________ on the Upward-Sloping Portion of a Firm's