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In the short run, there are many U-shaped cost curves. Which of the following explains why the ATC is that way in the short run? It is U-shaped because the minimum efficient scale is achieved. It is U-shaped because the AFC declines as more goods are produced. It is U-shaped because of economies and diseconomies of scale. It is not U-shaped. It is U-shaped because of increasing and decreasing returns.
If a firm is experiencing economies of scale, what is true? the demand curve is flat. their MC curve is downward sloping. their MC curve is upward sloping. their ATC curve is upward sloping. their ATC curve is downward sloping.
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