When a Firm Experiences Economies of Scale, Long-Run Average Total

question 170

True/False

When a firm experiences economies of scale, long-run average total cost falls as the quantity of output increases.

---

Definitions:

Equilibrium Price

The market price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in a market.

Inequities

Unfair, avoidable differences in treatment or opportunities across individuals or groups.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given period.