Economies of Scale

Multiple Choice

Economies of scale

A) account for the downward-sloping portion of the long-run average cost curve.
B) occur when an increase in resources causes a less-than-proportionate increase in output.
C) suggest that the firm's marginal cost curve lies above its average cost curve.
D) suggest that the firm's marginal cost curve is declining.
E) are represented by the declining portion of the average fixed cost curve.