For economies of scale, a(n) ________ in a firm's scale of production leads to ________ average total cost.
A) increase; lower
B) increase; higher
C) decrease; lower
D) decrease; no change in

Question

Quizplus · Accepted Answer

Economies of scale occur when an increase in a firm's scale of production leads to a lower average total cost, as the firm can spread fixed costs over more units of output.

For Economies of Scale, A(n) ________ in a Firm's Scale