Economies of scale exist as a firm increases its size in the long run because of all of the following except
A) as a larger input buyer, the firm can purchase inputs at a lower per unit cost.
B) as a firm expands its production, its profit margin per-unit of output increases.
C) the firm can afford more sophisticated technology in production.
D) labor and management can specialize even further in their tasks.
B
Economics
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What will be an ideal response?
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A. 1 only B. 2 only C. 3 only D. 1 and 3
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