The average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run due to________
-
Economies of scale
- Money cost
- Opportunity cost
- Cost functions
The correct answer is: A
Explanation
Economies of scale which is also known as scale of production set the size of plant, the number of plants installed and the technique of product. 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 Ξ± MC shape flatter.