According to the Theory of Cost,specialization in the Use of Variable

question 3

Multiple Choice

According to the theory of cost,specialization in the use of variable resources in the short-run results initially in:

• A) decreasing returns and declining average and marginal costs
• B) increasing returns and declining average and marginal costs
• C) increasing returns and increasing average and marginal costs
• D) decreasing returns and increasing average and marginal costs
• E) none of the above

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