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Laura Garcia
on Dec 11, 2024

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In the long run, firms in many industries often experience falling average total costs as a result of

A) gains through trade.
B) increasing marginal returns.
C) economies of scale.
D) lower fixed costs.

Falling Costs

A situation where the expenses associated with producing a good or service decrease, often leading to lower prices for consumers.

Economies of Scale

The cost advantage that arises with increased output of a product, where average costs start to fall as production scales up.

Marginal Returns

denotes the additional output obtained by adding one more unit of a specific input, while keeping other inputs constant.

  • Detail the conditions facilitating economies of scale for corporations.
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Albert SmithDec 14, 2024
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