MCQOPTIONS
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| 1. |
Under which of the following situations, economies of scale exists to the potential and persists? |
| A. | When firm is too small and too specialized |
| B. | When firms' decision to hire inputs do not result in an increase in the input costs |
| C. | When firm is too large and overdiversified |
| D. | When long-run cost of producing a unit falls as the output increases |
| Answer» E. | |