If a Firm Increases Its Output Level by 50 Percent

question 58

Multiple Choice

If a firm increases its output level by 50 percent and,as a result,long-run total cost rises by 40 percent,the firm is experiencing

• A)diseconomies of scale
• B)constant returns to scale
• C)economies of scale
• D)increasing marginal returns
• E)diminishing marginal returns

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