When a firm experiences economies of scale, long-run average total cost falls as the quantity of output increases.

Name: When a firm experiences economies of scale, long-run average total cost falls as the quantity of output increases.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

Economies of scale occur when a firm's long-run average total cost decreases as its output increases, due to factors such as spreading fixed costs over more units, specialization of labor, and more efficient use of technology.

When a Firm Experiences Economies of Scale, Long-Run Average Total