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At the Current Level of Output, Long-Run Marginal Cost Is

Question 148

Multiple Choice

At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. This implies that:


A) there are neither economies nor diseconomies of scale.
B) there are economies of scale.
C) there are diseconomies of scale.
D) the cost-output elasticity is greater than one.

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