- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 5. Understanding Economies and Diseconomies of Scale
CFA Practice Question
Features of a firm's technology that lead to falling long-run average cost as output increases are ______.
A. diminishing returns
B. diseconomies of scale
C. economies of scale
User Contributed Comments 2
| User | Comment |
|---|---|
| mansi | economies of scale are as the ouptut of a product increases the cost of the product comes down. So the technology that leads to falling long run average cost will be economies of scale. |
| bidisha | Click on check Los button above, and look at the last graph at the bottom of the page |