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FirmCo operates a paper plant. Last year, FirmCo opened a second production facility identical to its first facility in both amount of equipment and number
FirmCo operates a paper plant. Last year, FirmCo opened a second production facility identical to its first facility in both amount of equipment and number of workers hired. When the new facility became active, average total costs fell by 15%. This suggests... Question 5 options: FirmCo is experiencing diseconomies of scale. FirmCo is experiencing diminishing fixed costs of production. FirmCo is experiencing economies of scale. FirmCo is experiencing diminishing marginal returns to labor
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