Increasing returns to scale is characterized by:
A) constantly declining fixed costs.
B) diseconomies of scale; that is, the average cost falls as output rises.
C) economies of scale; that is, the average cost rises as output rises.
D) diseconomies of scale; that is, the average cost is constant as output rises.
E) economies of scale; that is, the average cost falls as output rises.
Correct Answer:
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