Economies of scale occur whenGroup of answer choiceslong-run average total costs rise as output increases.long-run average total costs fall as output increases.average fixed costs are falling.average fixed costs are constant.

Multiple Choice QuestionHow do economies of scale affect long-run average total costs for a firm?Multiple choice question.Long-run average total costs remain the same over a wide range of output.Long-run average total costs decline over a wide range of output.Long-run average total costs rise over a wide range of output.Not enough information is provided to determine the answer.

If a firm experiences the diseconomies of scale, it means that:Question 8Answera.As the firm produces more, its long-run average total cost increases.b.As the firm produces more, its long-run average total cost decreases.c.The firm is operating at the minimum efficient scale.d.The firm is in a competitive market.

What is implied when a firm experiences constant returns to scale?The firm's long-run average cost decreases as it produces more output.The firm's long-run average cost increases as it produces more output.The firm's long-run average cost remains constant as it produces more output.The firm's long-run average cost fluctuates irregularly as it produces more output

The lowest level of output at which the long-run average total cost is minimized is called:Multiple choice question.economies of scale.diseconomies of scale.minimum-efficiency scale.constant returns to scale.

Fill in the Blank QuestionFill in the blank question.A firm's long-run average total costs may decline over a wide range of output due to of scale.