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Suppose a Firm Experiences Decreasing Returns to Scale

Question 131

Multiple Choice

Suppose a firm experiences decreasing returns to scale.This is shown graphically by


A) a downward-sloping long-run average cost curve.
B) an upward-sloping long-run average cost curve.
C) a downward-sloping long-run marginal-cost curve.
D) a horizontal long-run average cost curve.
E) an increasing marginal product curve.

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