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A firm encountering economies of scale over some range of output will have a
  • a)
    rising long-run average cost curve 
  • b)
    falling long-run average cost curve 
  • c)
    constant long-run average cost curve 
  • d)
    rising, then falling, then rising long-run average cost curve 
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A firm encountering economies of scale over some range of output will ...
A firm encountering economies of scale over some range of output will have a  falling long-run average cost curve. 
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A firm encountering economies of scale over some range of output will have aa)rising long-run average cost curveb)falling long-run average cost curvec)constant long-run average cost curved)rising, then falling, then rising long-run average cost curveCorrect answer is option 'B'. Can you explain this answer?
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