Solved

Suppose That a Firm,operating Efficiently,doubles the Size of Its Operations

Question 65

Multiple Choice

Suppose that a firm,operating efficiently,doubles the size of its operations and discovers that,as a result,its average cost of production has fallen.What does this imply?


A) Decreasing returns to scale are present.
B) Increasing returns to scale are present.
C) Constant returns to scale are present.
D) No conclusion about returns to scale can be made.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions