MCQOPTIONS
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| 1. |
If all resources used in the production of a product are increased by 20 percent and outputincreases by 20 percent, then there must be: |
| A. | economies of scale |
| B. | diseconomies of scale |
| C. | constant returns to scale |
| D. | increasing average total costs. |
| Answer» D. increasing average total costs. | |