Economies of Scale in the Production of a Good Implies

question 10

Multiple Choice

Economies of scale in the production of a good implies that:

• A)the long-run average cost of production rises as the scale of operation expands.
• B)the marginal cost of production falls below zero as the scale of operation contracts.
• C)the long-run average cost of production falls as the scale of operation expands.
• D)the long-run average cost of production remains the same as the scale of operation increases.
• E)the marginal output decreases as the amount of a factor of production is incrementally increased.