What happens to long-run average cost when a firm experiences economies of scale?
A
As a firm increases its scale of output, its long-run average cost remains constant.
B
As a firm increases its scale of output, its long-run average cost falls.
C
As a firm increases its scale of output, its long-run average cost rises.
D
As a firm increases its scale of output, its short-run average cost falls.
1.4.5 Economies and diseconomies of scale Flashcards
Flashcards for AQA A Level Economics 1.4.5 Economies and diseconomies of scale, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 24 cards, matched to the AQA A Level Economics (7136) specification.