A firm decides to scale back its operations due to projections of slower demand. It will move from a large building to a smaller size office space. It will be paying less in total costs, although its costs per unit of output will be larger. The firm's average cost curve exhibits at these points

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Answer : economies of scale

Explanation:

The Firm's average cost curve will exhibit at the point of economies of scale. economies of scale is the advantage enjoyed by business when they scale up (increase their scale of operation ) the advantage is that the cost per unit of production decreased while when the firms scales back ( reduction in their scale of operation the costs per unit of output will be larger.

and this is due to the fact that the total fixed cost remains the same and this will negatively affect the Average fixed cost of the firm The firm scaling back  will find its average cost curve exhibiting itself under the economies of scale.

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1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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