Asked by
Laura Garcia
on Dec 11, 2024Verified
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.
Verified Answer
AS
Learning Objectives
- Detail the conditions facilitating economies of scale for corporations.