Asked by
Tabitha McClendon
on Nov 04, 2024Verified
When long-run average costs decrease as a result of industry growth, there are
A) internal economies.
B) internal diseconomies.
C) external economies.
D) external diseconomies.
Internal Economies
Cost-saving measures that arise from the expansion of a firm, affecting the production process internally.
External Economies
Benefits that a firm obtains due to the actions of others or external factors, leading to reduced costs.
- Interpret the impact of external and internal economies and diseconomies of scale on long-run average costs.
Verified Answer
JT
Learning Objectives
- Interpret the impact of external and internal economies and diseconomies of scale on long-run average costs.