A firm encountering economies of scale over some range of output will have a

rising long-run average cost curve

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falling long-run average cost curve

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constant long-run average cost curve

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rising, then falling, then rising long-run average cost curve

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Solution

The correct option is B
falling long-run average cost curve

A firm encountering economies of scale over some range of output will have a falling long-run average cost curve.

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Similar questions

The positively sloped (i.e. rising) part of the long run average total cost curve is due to which of the following?

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