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Which of the Following Is FALSE

Question 69

Multiple Choice

Which of the following is FALSE?


A) In the long run, the firm has no fixed inputs.
B) In the long run, both the amount of capital and labour used by the firm can be changed.
C) Fixed costs increase in the long run.
D) As a firm produces more output, eventually it experiences diseconomies of scale.
E) Long-run average variable costs equal long-run average total costs.

Correct Answer:

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