Which of the following explains why long-run average cost at first decreases as output increases?
A)diseconomies of scale
B)less-efficient use of inputs
C)fixed costs becoming spread out over more units of output
D)gains from specialization of inputs

Question

Quizplus · Accepted Answer

As output increases, there are gains from specialization of inputs which means that workers can become more efficient at their specific tasks. This leads to a decrease in long-run average cost.

Which of the Following Explains Why Long-Run Average Cost at First