question 40\nas a firm expands its production capacity, it finds that the long - run average total cost of…

question 40\nas a firm expands its production capacity, it finds that the long - run average total cost of production decreases. this firm is achieving\n\na) profit maximization\n\nb) loss minimization\n\nc) economies of scale\n\nd) decreasing returns to scale\n\ne) allocative efficiency

question 40\nas a firm expands its production capacity, it finds that the long - run average total cost of production decreases. this firm is achieving\n\na) profit maximization\n\nb) loss minimization\n\nc) economies of scale\n\nd) decreasing returns to scale\n\ne) allocative efficiency

Answer

Brief Explanations:

Economies of scale occur when long - run average total cost decreases as a firm expands production capacity. Profit maximization is about maximizing profit, loss minimization about minimizing loss, decreasing returns to scale has rising long - run average total cost with expansion, and allocative efficiency is about producing the right mix of goods.

Answer:

C. economies of scale