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If a Firm Increases All of Its Inputs by 18

Question 76

Multiple Choice

If a firm increases all of its inputs by 18 percent and its output increases by 14 percent, then


A) it is encountering constant returns to scale.
B) it is encountering economies of scale.
C) it is encountering diseconomies of scale.
D) the firm's long-run ATC curve will be falling.

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