WAEC - Economics (2017 - No. 17)
when a firm is enjoying internal economies of scale, its?
total cost of production is increasing
average fixed cost is rising continuously
average cost of production decreases as output increases
average revenue and marginal revenue are decreasing
Uitleg
Internal economies of scale are related to the shift in average production costs for a business as it boosts its overall product output and the average cost per unit falls until maximum efficiency is attained. This means that, the overall production cost decreases, while output increases