External Economies of Scale Arise When the Cost Per Unit

question 25

Multiple Choice

External economies of scale arise when the cost per unit

• A) falls as the industry grows larger and rises as the average firm grows larger.
• B) rises as the industry grows larger and falls as the average firm grows larger.
• C) falls as the industry and the average firm grows larger.
• D) remains constant over a broad range of output.
• E) rises as the industry and the average firm grows larger.

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