WAEC Economics 2018 Objective — Question 17
Question 17 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.
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A firm's average cost decreases in the long-run because of
- A. increasing returns to scaleCorrect
- B. diminishing average returns
- C. decreasing marginal returns
- D. decreasing average fixed cost
Explanation
In the long run, average cost falls as a firm expands operations and benefits from increasing returns to scale (economies of scale).
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