Ritu Asked a Question
May 25, 2020 11:34 ampts 30 pts
Question L shaped average cost curve is witnessed in the large firms because (Paper II) Choices MCQ CHOICE (4 RESPONSE The law of constant returns to scale operates. a. b. Only the law of increasing returns operates. Only the law of constant return operates. C. C. d. The operation of law of decreasing returns is continuously postponed.
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  • Nidhi taparia Best Answer
    The correct answer is d. Option a. is not right because in the theory of cost curves, we consider returns to a factor and not returns to scale. Option b. is incorrect because if ...
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