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If a firm uses a production technology that exhibits increasing returns to scale (IRTS) then its long-run average cost function must be increasing. its long-run
If a firm uses a production technology that exhibits increasing returns to scale (IRTS) then
its long-run average cost function must be increasing.
its long-run average cost function must be decreasing.
its long-run marginal cost function must be increasing.
its long-run cost function must be increasing.
its long-run average cost function might be increasing or decreasing - we need more information to say for sure.
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