Which of the Following Is a Characteristic of Economies of Scale

question 24

Multiple Choice

Which of the following is a characteristic of economies of scale?

• A)The average cost declines as output increases
• B)The average cost increases as output increases
• C)The average cost remains constant as output increases
• D)The average costs are cheaper when a firm produces a wider variety of goods
• E)The average cost curve takes the form of a U-shape

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