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A Firm Will Want to Increase Its Scale of Plant

Question 104

Multiple Choice

A firm will want to increase its scale of plant if


A) it is persistently producing on the upward-sloping part of its short-run average total cost curve.
B) it is persistently producing on the downward-sloping part of its short-run average total cost curve.
C) it is producing below minimum efficient scale.
D) marginal cost is below average total cost.
E) marginal cost is below average variable cost.

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