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If a firm enjoys economies of scale,

a. its average total cost will increase as production increases. b...

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If a firm enjoys economies of scale,

a. its average total cost will increase as production increases.
b. its marginal revenue will increase as production increases.
c. its average total cost will decrease as production increases.
d. its total costs will decrease as production increases.

Answer

If a firm enjoys economies of scale, its average total costs will decrease since then production increases.
Economies of scale means the company is growing and the production is increasing.
Thus, the more supply they produce the more cost it may decrease.

Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017

This 45 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 93 views.

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