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1- When average total cost shifts rightward and lower in larger plants, we say that production involves: constant economies of scale. the law of diminishing

1- When average total cost shifts rightward and lower in larger plants, we say that production involves:

constant economies of scale.

the law of diminishing returns.

economies of scale.

the Giffen Effect.

2- The basic benefit of plant expansion:

will always outweigh the drawbacks.

is a postponing of the crowding problem

is avoiding a coordination problem.

none of the others is true.

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