A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct? Multiple Choice There are increasing returns to scale. The long-run average total cost curve is flat. The law of diminishing returns is proven wrong. The example is for the short-run rather than the long-run.
A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct? Multiple Choice There are increasing returns to scale. The long-run average total cost curve is flat. The law of diminishing returns is proven wrong. The example is for the short-run rather than the long-run.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 4SQ
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A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct?
Multiple Choice
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average total cost curve is flat. -
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