Over the long term, if a very small factory increases its production size, what is it most likely to encounter at the start?

Choose the correct answer

Explanation

When a small factory grows in size, it typically gains efficiency initially, leading to economies of scale. This means the average cost per unit decreases as production expands, rather than increasing or staying the same.

Over the long term, if a very small factory increase… — Average And Total Cost | PakQuizHub