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When There Are External Economies of Scale,an Increase in the Size

Question 27

Multiple Choice

When there are external economies of scale,an increase in the size of the market will


A) increase the number of firms and lower the price per unit.
B) increase the number of firms and raise the price per unit.
C) decrease the number of firms and raise the price per unit.
D) decrease the number of firms and lower the price per unit.
E) not affect the number of firms, but will lower the price per unit.

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