If the long-run average cost curve is a downward sloping curve for a. firm, it implies that the unit is subject to the law of …………………………. always.
A. Diminishing returns to factor
B. Diminishing return to scale
C. Increasing return to scale
D. Constant returns
Answer:C
If the long-run average cost curve is a downward sloping curve for a. firm, it implies that the unit is subject to the law of …………………………. always.
A. Diminishing returns to factor B. Diminishing return to scale C. Increasing return to scale D. Constant returns