One Explanation for the Existence of an Increasing-Cost Industry Is

question 70

Multiple Choice

One explanation for the existence of an increasing-cost industry is that

• A)increasing marginal returns to labor occur.
• B)firms produce beyond the point of minimum long-run average total costs.
• C)perfectly elastic long-run supply schedules are observed in the industry.
• D)as the industry expands, prices are bid up for some factors of production.

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