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Which of the following industries highlight the pattern of declining long-run average total costs?

a. Automobile
b. Computer microchip
c. Aluminum

User Rmdroid
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1 Answer

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Final answer:

The computer microchip industry exemplifies the pattern of declining long-run average total costs, owing to constant technological advances and economies of scale.

Step-by-step explanation:

The industries that highlight the pattern of declining long-run average total costs usually operate in fields that benefit from economies of scale and technological improvements. Notably, the computer microchip industry is a prime example of an industry with decreasing average total costs. This industry experiences constant technological advancements that increase efficiency, decrease production costs, and contribute to the education of employees, showcasing a strong pattern of reduced long-term average total costs.

In comparison, the automobile industry also experiences economics of scale, but the cost patterns may vary due to the capital intensity and other market dynamics. The aluminum industry can achieve lower average total costs as well, especially when innovations in processing technology or energy efficiency are introduced. However, out of the options provided, the computer microchip industry is the most synonymous with falling long-run average total costs due to rapid technological progression and high industry scalability.

User Swrobel
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