Question

When a firm operates with a given scale of production it affects the
(a) Short run production function
(b) Long-run production function
(c) Fixed production function
(d) All the above

Answer 1

Answer:

short run production function

Explanation:

Earlier in this module we saw that in the short run when a firm increases its scale of operation (or its level of output), its average cost of production can decrease or increase. This is illustrated in Figure 1.

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