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Which of the Following Is Most Likely to Be an Increasing-Cost

Question 141

Multiple Choice

Which of the following is most likely to be an increasing-cost industry?


A) an industry whose firms experience diseconomies of scale
B) an industry whose firms experience economies of scale
C) an industry that is a major buyer in the markets for the inputs it uses
D) an industry that is a very small buyer in the markets for the inputs it uses
E) an industry in which the firms earn positive economic profit in the long run

Correct Answer:

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