The shape of a firm's long-run ________ depends on how costs vary with scale of operations.
A) fixed cost curve
B) variable cost curve
C) average cost curve
D) marginal revenue curve

Question

Quizplus · Accepted Answer

The shape of a firm's long-run average cost curve depends on how costs vary with the scale of operations. This curve reflects economies and diseconomies of scale, showing how average costs per unit change as a firm adjusts its production scale.

The Shape of a Firm's Long-Run ________ Depends on How