The average curve and the marginal curve are U-... - JAMB Economics 2019 Question
The average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run due to________
A
Economies of scale
B
Money cost
C
Opportunity cost
D
Cost functions
correct option: a
A scale of production set the size of plant, the number of plants installed and the technique of product is known as Economics of scale. In the short-run, there is no time for the plant to expand while in the long-run, there is enough time for the firm to expand its size of plant which makes the AC α MC shape flatter.
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