When a firm is enjoying internal economies of scale, its?

A. total cost of production is increasing
B. average fixed cost is rising continuously
C. average cost of production decreases as output increases
D. average revenue and marginal revenue are decreasing

Correct Answer: Option C

C. average cost of production decreases as output increases

Explanation

Internal economies of scale are related to the shift in average production costs for a business as it boosts its overall product output and the average cost per unit falls until maximum efficiency is attained. This means that the overall production cost decreases, while output increases