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To Determine Whether a Firm Is Experiencing Economies of Scale

Question 149

Multiple Choice

To determine whether a firm is experiencing economies of scale, diseconomies of scale, or constant returns to scale, one would examine the _____ relationship between _____.


A) short run; the quantity of input and the average variable cost
B) short run; the quantity of output and the average total cost
C) long run; the quantity of input and the average variable cost
D) long run; the quantity of output and average total cost

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