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Suppose That in 2010 MBI Corp

Question 169

Multiple Choice

Suppose that in 2010 MBI Corp. produced 100 million units of a good at an average cost of $6, and in 2011 MBI Corp. expanded its plant capacity and produced 200 million units at an average cost of $6.20. In this range, one can conclude that MBI Corp. is experiencing:


A) economies of scale.
B) diseconomies of scale.
C) neither economies of scale or diseconomies of scale.
D) increasing marginal product.

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