Assume a given amount of output can be produced by several small plants or one large plant with identical minimum per-unit costs.This long-run situation reflects the existence of

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The given situation reflects constant returns to scale, as the cost of production per unit remains the same whether the output is produced by several small plants or one large plant. Therefore, there are no advantages or disadvantages in terms of economies or diseconomies of scale, and the best choice would be to select the option that is the most efficient, in terms of cost, technology, and other relevant factors.

Assume a Given Amount of Output Can Be Produced by Several