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When a Firm Is Facing Constant Returns to Scale,total Costs

Question 78

Multiple Choice

When a firm is facing constant returns to scale,total costs will


A) decrease as the firm increases its output.
B) increase at a decreasing rate as the firm increases its output.
C) decrease at an increasing rate as the firm increases its output.
D) increase at an increasing rate as the firm increases its output.
E) increase proportionately to output.

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