Because there are very significant economies of scale involved in making flat screen television sets in a competitive market, the price of flat screen TVs will:
A. stay exactly the same regardless of any shifts in the demand curve.
B. rise because of the combination of stronger demand and higher production costs.
C. rise because the long run average total cost curve is upward-sloping over the entire range of output.
D. fall as output expands because long-run average total costs are lower for higher quantities.
Answer: D
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