Asked by
Jeovanny Mejia
on Nov 17, 2024
Verified
If long-run average total cost is rising, then the firm is experiencing economies of scale.
Long-run Average Total Cost
The average cost per unit of output when all inputs, including capital, are variable, analyzed over a period when all factors of production can be adjusted.
Economies of Scale
The cost advantage that arises with increased output of a product, resulting in a decrease in the per-unit cost as the scale of production is enlarged.
- Master the framework and ramifications of economies of scale opposed to diseconomies of scale.
- Acquire knowledge of the variances between ascending, descending, and unchanging long-duration average total expenses.
Verified Answer
CJ
Learning Objectives
- Master the framework and ramifications of economies of scale opposed to diseconomies of scale.
- Acquire knowledge of the variances between ascending, descending, and unchanging long-duration average total expenses.