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Q. |
Economies of scale exist if: |
A. | As the amount of capital increases, the cost of producing per unit rises |
B. | As the amount of capital increases, the cost of producing per unit falls |
C. | As the amount of capital increases, the marginal cost rises |
D. | As the amount of capital increases, the marginal physical product falls |
Answer» B. As the amount of capital increases, the cost of producing per unit falls |
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