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  3. Study Set
    Managerial Economics Study Set 4
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    Exam 7: The Theory and Estimation of Cost Appendices 7A,7B,and 7C
  5. Question
    As a Firm Attempts to Increase Its Production,its Long-Run Average
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As a Firm Attempts to Increase Its Production,its Long-Run Average

Question 3

Question 3

Multiple Choice

As a firm attempts to increase its production,its long-run average costs eventually rise because of


A) the law of diminishing returns.
B) diseconomies of scale.
C) fixed capital.
D) insufficient demand.

Correct Answer:

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