Internal economies of scale are expected to bring about?

a

an increase in short-run average cost

b

an increase in long-run average cost

c

a decrease in long-run average cost

d

a decrease in short-run average cost

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Correct Option
c

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Discussions (6)

How will internal economies of scale brings about an increase in long run average cost.

The answer is C (decrease in long run average cost)

allbadoo
9 years ago

Because when the firm varies all its input i.e.s will gradually reduce to the long run or at d closing stages

Eryne
1 year ago

The correct answer to this question is c(decrease in the long run average cost) because these cost reduction advantages arise to reduce average cost when the firm can vary all of its factors and it takes place in the long run

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