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In the Long Run the Local Coffee Shop Incurs Total

Question 102

Multiple Choice

In the long run the local coffee shop incurs total costs of $625 when output is 1,250 cups of coffee and $750 when output is 1,500 cups of coffee. For this range of output, the coffee shop exhibits


A) economies of scale.
B) constant returns to scale.
C) diseconomies of scale.
D) efficient scale.

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