McqMate
| 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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