Lauren owns a bakery. She currently bakes around 10,000 loaves of bread per year. If she increases the size of her bakery so that she can bake even more bread, and her long-run average total cost remains unchanged, we know that Lauren is experiencing:
A) diseconomies of scale.
B) diminishing marginal product.
C) increasing marginal product.
D) constant returns to scale.
E) economies of scale.
Correct Answer:
Verified
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