When a firm experiences economies of scale as its output increase, its long-run average cust curve will?
جب ایک فرم کو پیداوار بڑھانے پر پیمانے کی معیشت حاصل ہو تو اس کا طویل المدتی اوسط لاگت کا منحنی کیسا ہوگا؟
- Remain above its marginal cost curve
- Slope down wards to the right
- Slope upwards to the right
- None of these
Explanation
- Economies of scale occur when a firm increases production and its cost per unit falls.
- In the long run, as output increases, efficiency improves and average cost decreases.
- This causes the long-run average cost (LRAC) curve to slope downward.
- It reflects lower per-unit cost at higher levels of production.
- Therefore, the curve slopes downwards to the right.
Last verified on 23-04-2026
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