Home › CBSE Class 11 (Arts) › Economics › Microeconomics: Producer Behaviour and Supply › The shape of the long-run average cost curve ref…
The shape of the long-run average cost curve reflects which factors?
AFixed cost spreading
BSeasonal demand
CEconomies of scale
DShort-run capacity
Answer & Solution
Correct answer: C. Economies of scale
In the long run the falling and rising portions come from scale effects, not fixed cost spreading.
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