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When a Firm with Constant Returns to Scale Uses 30

Question 197

Multiple Choice

When a firm with constant returns to scale uses 30% more of all inputs and input prices remain unchanged,then


A) total cost rises by less than 30%.
B) average cost falls by 30%.
C) total cost rises by more than 30%.
D) average cost remains unchanged.
E) average cost rises by 30%.

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