In the long run, a firm must shut down if its average revenue is A. equal to the minimum average cost. B. greater than average cost. C. less than average variable cost. D. equal to the average cost.
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QandA LiberiaTeacher
“The larger a firm, the lower its cost of production”, this statement explains the A. concept of economics of scale. B. law of comparative cost advantage. C. law of diminishing returns. D. theory of division of labour.
QandA LiberiaTeacher
A firm’s average cost decreases in the long run because of A. decreasing marginal returns. B. increasing returns to scale. C. diminishing average returns. D. decreasing average fixed cost.