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If There Are Economies of Scale Throughout the Relevant Output

Question 23

Multiple Choice

If there are economies of scale throughout the relevant output range of production, which is false?


A) It is a natural monopoly.
B) It is more efficient to have a single firm produce the good.
C) It would typically result from a firm's possession of an exclusive patent.
D) One large firm can produce at lower cost than two or more smaller firms.
E) None of the above is false; all are true.

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