Question

Economies of Scale implies that :

A. as a firm produces hires more labors , holding capital fixed the marginal product of labor will decrease .
B. As a firm produces more in the long run , its Average cost will increase
C. a firm produces more in the long run , its Average cost will decrease
D. As firm produces more in the long run, its Average cost will not change​

Answer 1

D. As firm produces more in the long run, it's average costs will not change

Answer 2

a firm produce more at a lower average cost