The main source of economies of scale is

A) better management.
B) constant returns to plant size.
C) specialization.
D) long-run cost curves eventually sloping downward.
E) increases in the labor force not matched by increases in the plant size.

C

Economics

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For a perfectly competitive firm at its long-run equilibrium

A) P = MR = MC = AC. B) P = MR > MC. C) accounting profit must be zero. D) there are no opportunity costs to be concerned with.

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The income multiplier is equal to 1/MPC

Indicate whether the statement is true or false

Economics