Question 1
The shape of a firm's long-run ________ depends on how costs vary with scale of operations.
◦ fixed cost curve
◦ variable cost curve
◦ average cost curve
◦ marginal revenue curve
Question 2
A(n) ________ in a firm's scale of production leads to ________ average total cost when there are economies of scale.
◦ increase; lower
◦ increase; higher
◦ decrease; lower
◦ decrease; no change in