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If Technological Innovation Occurs When a Firm Is Experiencing Diseconomies

Question 15

Multiple Choice

If technological innovation occurs when a firm is experiencing diseconomies of scale:


A) the long-run average total cost curve will shift down but will still rise as output expands.
B) long-run average total costs will remain the same as output expands.
C) short-run average total costs will fall as output expands.
D) product prices will rise, leading to inflation.

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