When a Firm Is Experiencing Economies of Scale

question 63

Multiple Choice

When a firm is experiencing economies of scale,

• A)long-run total cost is decreasing.
• B)long-run average (per-unit)total cost is decreasing.
• C)an increase in output is accompanied by a more-than-proportionate increase in long-run total cost.
• D)a given percentage increase in output requires a more-than-proportionate increase in resources.

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