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A Manufacturer of Towels Finds That His Returns to Scale

Question 55

Multiple Choice

A manufacturer of towels finds that his returns to scale are constant.Which of the following conclusions can be drawn?


A) The long-run total cost curve is horizontal.
B) The long-run average cost curve is horizontal.
C) The long-run total cost curve is downward sloping.
D) The long-run average cost curve is downward sloping.

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