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If the Generic Production Function Q = F (K,L)displays Increasing

Question 28

Multiple Choice

If the generic production function Q = f (K,L) displays increasing returns to scale,the value of K is fixed in the short run,and the prices of all inputs are held constant,then


A) the short-run average cost curve must be strictly decreasing.
B) the long-run average cost curve must be strictly decreasing.
C) the short-run and the long-run average cost curves will coincide.
D) the long-run average cost curve must be strictly increasing.

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