Chapter 56, Problem 3MCQ

To determine

The correct statement

Explanation of Solution

The correct option is the long-run average total cost curve is U-shaped because at low levels of production, firms experience economies of scale and at high levels of production they have diseconomies of scale.

Therefore, the correct option is e.

Economics Concept Introduction

Introduction:

Long run is a long-term time period under which a firm operates its business and invest for long time period.