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Social Science Clinic => Economics => Microeconomics => Topic started by: jc611 on Oct 8, 2019

Title: If economies of scale are relatively important in an industry, the typical firm's
Post by: jc611 on Oct 8, 2019

If economies of scale are relatively important in an industry, the typical firm's

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marginal cost curve will decline continuously until it reaches minimum efficient scale.

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long-run average cost curve will reach a minimum at a level of output that is a relatively large fraction of total industry sales.

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long-run average cost curve will reach a minimum at a level of output that leaves room for a large number of firms to enter the industry.

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long-run average cost curve will begin rising before it reaches minimum efficient scale.

Title: If economies of scale are relatively important in an industry, the typical firm's
Post by: nixon_s on Oct 8, 2019

long-run average cost curve will reach a minimum at a level of output that is a relatively large fraction of total industry sales.