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What happens to average cost of production when a firm increases its scale of production and enjoys technical economies?
  • a)
    It increases.
  • b)
    It remains the same.
  • c)
    It decreases.
  • d)
    It fluctuates unpredictably.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What happens to average cost of production when a firm increases its s...
When a firm increases its scale of production and enjoys technical economies, the average cost of production decreases. Technical economies, such as the efficient use of machinery, lead to cost savings and lower average production costs.
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What happens to average cost of production when a firm increases its scale of production and enjoys technical economies?a)It increases.b)It remains the same.c)It decreases.d)It fluctuates unpredictably.Correct answer is option 'C'. Can you explain this answer?
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