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Commerce · Q1294

Economics

Graduate and Post Graduate · Commerce · question 1294

Q1294

The economies and diseconomies of scale explain why the

A.
Short-run average fixed cost curve declines so long as output increases
B.
Marginal cost curve must intersect the minimum point of the firm's average total cost curve
C.
Long-run average total cost curve is typically U-shaped
Answer
D.
Short-run average variable cost curve is U-shaped

Answer: Option C

Solution

Answer: Option C
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