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    International Economics Study Set 10
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    Exam 6: Increasing Returns to Scale and Monopolistic Competition
  5. Question
    Which of the Following Will NOT Cause Increasing Returns to Scale
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Which of the Following Will NOT Cause Increasing Returns to Scale

Question 68

Question 68

Multiple Choice

Which of the following will NOT cause increasing returns to scale
And declining average costs?


A) focusing on a single product line and specializing
B) exporting goods to other countries
C) selling more in their home market
D) hiring more workers at the existing plant

Correct Answer:

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