Limited access

Upgrade to access all content for this subject

Which of the following could explain what is happening as output moves from A to C on the long-run ATC curve in the above graph?

A

As a firm's factory becomes more crowded, additional output begins to decrease.

B

The firm increases its inputs by 15%, and outputs only increase by 10%.

C

The rates the firm pays for electric power fall.

D

Property taxes are decreased by the municipality in which the firm operates.

E

Increasing specialization among the firm's workers leads to increasing returns to scale.

Select an assignment template