O c. Increase

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
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QUESTION 13
Assume the following:
• A firm is experiencing economies of scale (increasing returns to scale)
• The firm decides to decrease its quantity of output because of low demand
What will happen to the long-run average total cost of the firm?
a. Remain Constant
b. Decrease
c. Increase
d. This is unpredictable
Transcribed Image Text:QUESTION 13 Assume the following: • A firm is experiencing economies of scale (increasing returns to scale) • The firm decides to decrease its quantity of output because of low demand What will happen to the long-run average total cost of the firm? a. Remain Constant b. Decrease c. Increase d. This is unpredictable
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