Multiple Choice
A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct?
A) There are increasing returns to scale.
B) The long-run average total cost curve is flat.
C) The law of diminishing returns is proven wrong.
D) The example is for the short-run rather than the long-run.
Correct Answer:
Verified
Correct Answer:
Verified
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