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

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Question:

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

A.

Rising long-run average cost curve.

B.

Falling long-run average cost curve.

C.

Constant long-run average cost curve.

D.

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

Answer» b. Falling long-run average cost curve.

Note: The above multiple-choice question is for all general and Competitive Exams in India.