IAI May 2014 Q. 11

Discussion in 'CT7' started by shdh, Aug 31, 2016.

  1. shdh

    shdh Ton up Member

    I have a query in this question:

    The fall in a firm’s SRAC with an increase in production would be due to which of the following?

    a. The greater divisibility of fixed costs
    b. Diminishing returns to a fixed factor
    c. Economies of scale
    d. Diseconomies of scale

    Why is the answer a and not b?

    Thanks
    Regards,
    Shyam


    Edit: Got the answer!
     
    Last edited: Aug 31, 2016

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