When the Long-Run Average Cost Curve Is Downward Sloping

question 209

Multiple Choice

When the long-run average cost curve is downward sloping,

• A) economies of scale are present.
• B) diseconomies of scale are present.
• C) the firm experiences constant returns to scale.
• D) the average fixed cost curve must be upward sloping.
• E) The premise of the question is wrong because long-run average cost curves never slope downward.

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