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If a Firm Is Experiencing Constant Returns to Scale

Question 44

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If a firm is experiencing constant returns to scale


A) long-run average total cost neither rises nor falls as production increases
B) average fixed cost is zero
C) the increase in average variable cost is exactly offset by a decrease in average fixed cost
D) the decrease in average variable cost is exactly offset by an increase in average fixed cost
E) long-run average total cost is zero.

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