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.
Correct Answer:

Verified
Correct Answer:
Verified
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