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.

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.

A firm is reducing their output from 2,000 units to 1,000 units. This decision results in a reduction in the long run average cost from $300 to $200. What can be said about this firm?Multiple choice question.The firm is experiencing constant returns to scale.The firm is experiencing profitable returns to scale.The firm is experiencing economies of scale.The firm is experiencing diseconomies of scale.

Economies of scale occur when a firm’sGroup of answer choicesmarginal costs are constant as output increases.long-run average total costs are decreasing as output increases.long-run average total costs are increasing as output increases.marginal costs are equal to average total costs for all levels of output.

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

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.