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If a Firm's Long-Run Average Total Curve Shows That It

Question 81

Multiple Choice

If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of


A) diminishing returns.
B) economies of scale.
C) diseconomies of scale.
D) the law of supply.

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