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As a Firm with Decreasing Returns to Scale Technology Increases

Question 8

Multiple Choice

As a firm with decreasing returns to scale technology increases its output,


A) It will experience diseconomies of scale and its average cost of production will rise
B) It will experience diseconomies of scale and its average cost of production will fall
C) It will experience economies of scale and its average cost of production will rise
D) It will experience economies of scale and its average cost of production will fall

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