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Author Question: A firm decreases its scale of operation and discovers that its long-run average costs decrease. ... (Read 23 times)

Lobcity

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A firm decreases its scale of operation and discovers that its long-run average costs decrease. Which of the following does this indicate?
◦ Labor's marginal product has increased.
◦ Diseconomies of scale were absent in the larger plant.
◦ The firm's scale initially was so large that it experienced diseconomies of scale.
◦ The firm's scale initially was too small to experience economies of scale.
◦ Its long-run marginal cost was smaller with the larger plant than with the smaller plant.


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Marked as best answer by Lobcity on May 24, 2019

mirabriestensky

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