Which type of firms will belong to a decreasing cost industry at high output levels?

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25-08-2022
Social Studies

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Which type of firms will belong to a decreasing cost industry at high output levels?

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smecloudbird17 smecloudbird17 · Answer 1 · 2022-08-31T22:10:32-04:00

Monopoly firms will belong to a decreasing cost industry at high output levels.

Firms are corporate entities that buy and sell items and/or services to clients in order to make a profit. A business is typically founded as a collaboration that offers professional services such as legal or accountancy. Generally speaking, a firm refers to a for-profit business; it excludes sole proprietorships.

A decreasing cost industry is distinguished by a downward sloping long run supply curve. In this case, when an increase in market demand stimulates additional output to meet that demand, product prices tend to fall due to falling production costs.

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