JAMB - Economics (2010 - No. 18)
A firm enjoying economies of scale is said to be
reducing average cost as production increases
benefiting from the activities of other firms
maximizing profits as production increases
having an upward-sloping average cost curve
Explanation
As long as the Long run average cost curve is declining, then internal economies of scale are being exploited. If LRAC is falling when output is increasing, then the firm is experiencing economies of scale.