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1 Suppose you know that a firm operates with increasing returns to scale, and it produces q=100 units at an average cost of 40. If,

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Suppose you know that a firm operates with increasing returns to scale, and it produces q=100 units at an average cost of 40. If, in the long run, the firm scaled down all of its inputs so that its output dropped by 10% (to 90 units), its AC of production would: O remain at $40 O rise to $50 drop to $0 O drop below $40 increase above $40

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