Suppose a Candy Manufacturer Can Triple Its Production of Fudge

question 3

Multiple Choice

Suppose a candy manufacturer can triple its production of fudge by doubling its production facility for making fudge. This indicates the presence of

• A)constant returns to scale.
• B)economies of scale.
• C)diseconomies of scale.
• D)market constraints.
• E)the law of diminishing returns.

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