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    Exam 11: Output and Costs
  5. Question
    A Firm Increases Both Its Plant and Its Labor Force
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A Firm Increases Both Its Plant and Its Labor Force

Question 267

Question 267

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A firm increases both its plant and its labor force by the same percentage and its average total costs remain unchanged. Is the firm experiencing increasing returns to scale, constant returns to scale, or decreasing returns to scale?

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The firm is experien...

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