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If a firm builds a larger plant and diseconomies of scale apply, which of the following statements is correct? A. The economic capacity output of
If a firm builds a larger plant and diseconomies of scale apply, which of the following statements is correct?
A. The economic capacity output of the larger plant has a lower average cost.
B. The economic capacity output of the larger plant has the same average cost.
C. The economic capacity output of the larger plant has higher average cost.
D. The LRAC cost curve will decrease as output increases.
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