If a Firm Has Lower Costs Per Unit as It

question 26

Multiple Choice

If a firm has lower costs per unit as it increases production in the long run, this is an example of:

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)increasing opportunity costs.
• D)scale reduction.

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Definitions:

Mature Person

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Generation Y

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Grey Market

The sale of legitimate products through unauthorized distribution channels, often at lower prices.