Using a long-run cost curve, explain why a larger plant is not always more productively efficient.?

Answer 1

nopes mostly they are efficient at reducing the costs concern....
but that doesn't means it will be a successful firm coz it needs to sell what it has produced.
long run cost curve reduces the costs that doesn't means increase in profit...
even the long run cost curve beyond a certain scale increases the cost i.e. when a plant wants to produce greate than 100% of the plant capacity say 20% for that 20% it has to go for a new machine so there is a lack of 40% behind when the new machine comes in the average reduces to 60% (100 + 20) /2

Answer 2

is it cost effective ?