Quiz: Quiz 9 This Question: 1 pt 2 of 20 (1 complete) Economies of scale occur 0

Question

Quiz: Quiz 9 This Question: 1 pt 2 of 20 (1 complete) Economies of scale occur 0 A, when the marginal cost of production decreases with output. O B. when a firm's long-run average costs increase with output O C. when the marginal product of labor increases with output O D. when a firm's long-run average costs decrease with output. For which of the following reason(s) may firms experience economies of scale? O A. Both managers and workers may become more specialized and hence more productive as output expands. B. Large firms may be able to purchase O c. Finn's producton may increase with a smaller proportional increase in at least one input. O D. All of the above. inputs at lower costs than smaller competitors; they can also borrow money at a lower interest rate.

Explanation / Answer

Solution -

B.When a firm's long-run long average costs increase with output

All of above is Correct Option

Reason - With the expansion of the industry, the expansion of that business gets the benefit. They are such factors that reduce the cost of the manufacturers of one unit and increase the amount.

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