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External Economies of Scale Occur When

Question 128

Multiple Choice

External economies of scale occur when


A) a firm's supply curve is downward-sloping.
B) an increase in firm output results in lower long-run average total costs.
C) an increase in the number of firms in an industry causes production costs to decline.
D) marginal product increases when input increases.
E) all firms in an industry experience decreasing marginal costs.

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