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Suppose a Firm Experiences Decreasing Returns to Scale

Question 58

Multiple Choice

Suppose a firm experiences decreasing returns to scale.This is shown graphically by


A) a downward- sloping long- run marginal- cost curve.
B) an increasing marginal product curve.
C) a horizontal long- run average cost curve.
D) a downward- sloping long- run average cost curve.
E) an upward- sloping long- run average cost curve.

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