contestada

Suppose a firm has economies of scale over all levels of its output and production levels, its long-run average total cost curve will: Group of answer choices Be vertical. Slope upward. Be horizontal. Slope downward. Be extremely upwardly sloping and steep.

Respuesta :

Parrain

Answer: Slope downward.

Explanation:

When a firm is experiencing economies of scale, it means that they their costs are reducing per output produced which means that the more units they produce, the less their average cost.

The long-run average total cost curve shows the average cost of production at different production levels and will therefore slope downward to reflect that with every additional good produced, the average cost is reducing.