The downward-sloping section of the long-run average cost curve corresponds to returns to scale.

increasing

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decreasing

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constant

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negative

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Solution

The correct option is A increasing
The downward-section of the U-shaped LRAC curve correpsonds to increasing returns to scale.

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Similar questions

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

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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