1580EconomicsMedium
Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be?
AU-shaped
Bupward sloping to the right
CHorizontal
Ddownward sloping to the right
Correct answer
A. U-shaped
Explanation
The correct answer is U-shaped.