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When a fiRm Experiences Decreasing Returns to Scale, _____

Question 33

Multiple Choice

When a firm experiences decreasing returns to scale, _____.


A) its long-run average cost curve rises as output expands
B) it should expand its scale of operations to increase production efficiency
C) an increase in all inputs will increase output proportionately
D) it is on the downward-sloping portion of the long-run average total cost curve

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