Suppose That a Firm's Long-Run Average Total Costs of Producing

question 638

Multiple Choice

Suppose that a firm's long-run average total costs of producing televisions decreases as it produces between 10,000 and 20,000 televisions. For this range of output, the firm is experiencing

• A)economies of scale.
• B)constant returns to scale.
• C)diseconomies of scale.
• D)coordination problems.

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Definitions:

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