The average curve and the marginal curve are U-shaped in ...
The average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run due to________
Economies of scale
Money cost
Opportunity cost
Cost functions
Correct answer is A
Economies of scale which is also known as scale of production set the size of plant, the number of plants installed and the technique of product. In the short-run, there is no time for the plant to expand while in the long-run, there is enough time for the firm to expand its size of plant which makes the AC α MC shape flatter.
\(\begin{array}{c|c} \text{Unit of output} & \text{Table cost}\\ \hline 1 & 20 \\ 2 &...
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