• 2022-06-17
    In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,600 when output is 40 units. Firm A exhibits_________.
    A: constant returns to scale because average total cost is constant as output rises
    B: diseconomies of scale because total cost is rising as output rises
    C: economies of scale because average total cost is falling as output rises
    D: diseconomies of scale because average total cost is rising as output rises