Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
Related questions
Question
Suppose a firm has increasing returns to scale. The firm then increases its use of all inputs. Which of the following statements is correct?
Group of answer choices
The firm’s output will decrease. Its long run average total cost will decrease.
The firm’s output will increase. Its long run average total cost will increase.
The firm’s output will increase. Its long run average total cost will remain the same.
The firm’s output will increase. Its long run average total cost will decrease.
The firm’s output will decrease. Its long run average total cost will increase.
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