The ABC Corporation Decreases All of Its Inputs by 12

question 154

Multiple Choice

The ABC Corporation decreases all of its inputs by 12 percent and finds that its output falls by only 8 percent. This means that initially it was producing

• A) in the range of diseconomies of scale.
• B) in the range of economies of scale.
• C) where AP is less than MP.
• D) at the point of minimum efficient scale.

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