If a Company Has Significant Economies of Scale in the Long

question 15

Multiple Choice

If a company has significant economies of scale in the long run - assuming a large market -- the company will tend to:

• A) grow larger and have a declining average cost curve.
• B) become smaller and have a declining average cost curve.
• C) grow larger and have raising average cost curve.
• D) become smaller and have a rising average cost curve.

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