Assertion: curve's slope | /r/HasProperty | due
Facets:
value: to decreasing returns
type: CAUSE
value: to declining average fixed costs.:227
type: CAUSE
value: largely
type: DEGREE
Source sentences:
text: For the short run curve the initial downward slope is largely due to declining average fixed costs.:227
text: Increasing returns to the variable input at low levels of production also play a role, while the upward slope is due to diminishing marginal returns to the variable input.:227
text: At low levels of production long run production functions generally exhibit increasing returns to scale, which, for firms that are perfect competitors in input markets, means that the long run average cost is falling;:227 the upward slope of the long run average cost function at higher levels of output is due to decreasing returns to scale at those output levels.:227