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.Management Sciences
Category: Average And Total Cost
In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?
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A. an increase in average total costs
B. diseconomies of scale
C. economies of scale
D. constant returns to scale
If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?
A. be flat (horizontal)
B. slope upward
C. slope downward
D. be U-shaped.
Which of the following statements is true ?
A. All costs are fixed in the short run.
B. All costs are variable in the long run
C. All costs are variable in the short run
D. All costs are fixed in the long run
If there are implicit costs of production ?
A. accounting profit will exceed economic profit
B. economic profit will always be zero
C. economic profit will exceed accounting profit
D. accounting profit will always be zero
E. economic profit and accounting profit will be equal
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