The declining portion of Wal-Mart's long-run average total cost curve is explained by
A) the law of diminishing returns
B) constant returns to scale
C) economies of scale
D) diseconomies of scale

Question

Quizplus · Accepted Answer

Economies of scale explain the declining portion of Wal-Mart's long-run average total cost curve, as costs decrease with increased production levels due to factors like bulk purchasing, specialized labor, and efficient use of production facilities.

The Declining Portion of Wal-Mart's Long-Run Average Total Cost Curve