Declining cost industries
A)have upward rising AC curves.
B)have upward rising demand curves.
C)have $\cap$-shaped total costs.
D)have diseconomies of scale.
E)have marginal cost curves below their average cost curve.

Question

Quizplus · Accepted Answer

Declining cost industries experience economies of scale as they grow, resulting in a downward sloping long-run average cost curve. This means that the marginal cost curve, which intersects the average cost curve at its lowest point, is below the average cost curve.

Declining Cost Industries A)have Upward Rising AC Curves ∩\cap∩ -Shaped Total Costs

Declining Cost Industries
A)have Upward Rising AC Curves $\cap$ -Shaped Total Costs