145k views
1 vote
If a firm enjoys economies of scale,

its average total cost will increase as production increases

its total costs will decrease as production increases

its average total cost will decrease as production increases

its marginal revenue will increase as production increases

1 Answer

3 votes

Answer: Its average total cost will decrease as production increases

Explanation: Variable cost will decrease as a result of economies of scale, therefore the cost/unit or average total cost will decrease.

User Alienlebarge
by
3.6k points