A firm enjoying economies of scale is said to be

Economics

JAMB 2010

A. reducing average cost as production increases
B. benefiting from the activities of other firms
C. maximizing profits as production increases
D. having an upward-sloping average cost curve

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Correct Answer: Option A

Explanation

As long as the Long run average cost curve is declining, then internal economies of scale are being exploited. If LRAC is falling when output is increasing, then the firm is experiencing economies of scale.

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A firm enjoying economies of scale is said to be

Correct Answer: Option A

Explanation

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