If a Firm Enlarges Its Factory Size and Realizes Higher

question 64

Multiple Choice

If a firm enlarges its factory size and realizes higher average (per unit) costs of production then:

• A) it has experienced economies of scale.
• B) it has experienced diseconomies of scale.
• C) it has experienced constant returns to scale.
• D) the long-run average cost curve slopes downward.
• E) the long-run average cost curve shifts upward.