Refer to Exhibit 9.1, which shows the long-run average cost of a firm. The downward-sloping long-run average cost curve indicates that this firm can supply market demand at a lower average cost per unit than two or more firms each producing a smaller amount of output. at a lower average cost per unit than two or more firms each producing a larger amount of output. at a higher average cost per unit than two or more firms each producing a larger amount of output. at a higher average cost per unit than two or more firms each producing a smaller amount of output. O at the same average cost per unit as two or more firms each producing a larger amount of output.

Refer to Exhibit 9.1, which shows the long-run average cost of a firm. The downward-sloping long-run average cost curve indicates that this firm can supply market demand at a lower average cost per unit than two or more firms each producing a smaller amount of output. at a lower average cost per unit than two or more firms each producing a larger amount of output. at a higher average cost per unit than two or more firms each producing a larger amount of output. at a higher average cost per unit than two or more firms each producing a smaller amount of output. O at the same average cost per unit as two or more firms each producing a larger amount of output.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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