The Figure Given Below Shows Three Short Run Average Total

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-In the electricity generation industry, the cost per kilowatt hour of electricity declines as the capacity to generate output increases. This situation represents:

A) a poor opportunity for investors.
B) constant returns to scale.
C) diseconomies of scale.
D) economies of scale.
E) decreasing returns to scale.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free