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Agriculture Economics QUESTION #11869
Question 1
A firm exhibiting a decreasing cost curve is one whose per-unit costs:
  • Rise as output expands
  • Fall as output expands, reflecting economies of scale✔️
  • Remain constant regardless of scale
  • Are unrelated to the level of output
Correct Answer Explanation
A decreasing cost firm experiences falling average costs as output increases, characteristic of economies of scale.