Increasing Returns to Scale Is Characterized By

question 56

Multiple Choice

Increasing returns to scale is characterized by:

• A) constantly declining fixed costs.
• B) diseconomies of scale; that is, the average cost falls as output rises.
• C) economies of scale; that is, the average cost rises as output rises.
• D) diseconomies of scale; that is, the average cost is constant as output rises.
• E) economies of scale; that is, the average cost falls as output rises.

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Definitions:

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