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Basic Question 3 of 7
If the firm has economies of scale in the long run, then the long-run average cost curve is ______.
B. horizontal
C. downward-sloping
D. It depends on whether there are diminishing returns.
E. It depends on the minimum efficient scale.
A. upward-sloping
B. horizontal
C. downward-sloping
D. It depends on whether there are diminishing returns.
E. It depends on the minimum efficient scale.
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Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2025 Level I Curriculum, Volume 1, Module 1.