The average curve and the marginal curve are U-shaped in the short-run and flatter in...

Economics

JAMB 2019

The average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run due to________

A. Economies of scale
B. Money cost
C. Opportunity cost
D. Cost functions

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Correct Answer: Option A

Explanation

Economies of scale which is also known as scale of production set the size of plant, the number of plants installed and the technique of product. In the short-run, there is no time for the plant to expand while in the long-run, there is enough time for the firm to expand its size of plant which makes the AC α MC shape flatter.

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