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When a Firm Becomes So Large It Is Difficult to Coordinate

Question 48

Multiple Choice

When a firm becomes so large it is difficult to coordinate and control, it is most likely that


A) there are increasing marginal returns to increasing the firm's plant size.
B) average total cost begins to fall.
C) long-run average costs become negative.
D) economies of scale have begun.
E) diseconomies of scale have begun.

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