If a higher level of production allows workers to specialize in particular tasks, a firm will likely exhibit ______________ and ________________ average total cost.

Alright. Let's try this one. If a higher level of production allows workers to specialize in particular tasks, a firm will likely exhibit blank and blank average total costs. Alright? So a key thing here is that we're increasing production right? Higher level of production, so quantity is going up and it tells us that workers are going to specialize right? Remember when we talked about specialization? That was a good thing right? We were able to increase or excuse me, lower our costs because of these this increased productivity, right? Where each worker has a special task, we're able to find economies of scale, right? So we talked about specialization and we talked about economies of scale, right? Where they're able to lower their costs as quantity increases and that's gonna be the definition of our economies of scale, right? So we're gonna see that we have economies of scale and that there's falling average total cost, right? That is the definition of economies of scale is that we're gonna increase our quantity and we are going to decrease average total cost right? So that's exactly what's happening there. Diseconomies of scale would be some situation where the quantity is so high, we're producing so much that we start increasing our average total cost again. We're losing those kind of synergies we've been getting and our costs start increasing again, alright? So in this case they're talking about specialization, this sounds like a good thing, so we're going to experience economies of scale and it's going to drive our total cost, our average total cost down. Alright, that's the answer there is A. Let's go ahead and move on.

If a higher level of production allows workers to specialize in p...

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If a higher level of production allows workers to specialize in particular tasks, a firm will likely exhibit and __ average total cost.

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