If the average costs of production decline with increases in output, then the larger a firm is, the lower its per unit costs will be

In the long run, firms in monopolistic competition become price takers

Indicate whether the statement is true or false

If output is increased in the long-run, then in the presence of internal economies of scale the number of firms will ________, and in the presence of constant external returns to scale the number of firms will ________

A) decrease; decrease B) increase; remain constant C) remain constant; increase D) decrease; remain constant E) increase; decrease