When the Long-Run Average Cost Curve Is Downward Sloping,

Question 103
Multiple Choice

When the long-run average cost curve is downward sloping, A) economies of scale are present. B) diseconomies of scale are present. C) the average fixed cost curve must be upward sloping. D) the firm experiences constant returns to scale. E) The premise of the question is wrong because long-run average cost curves never slope downward.