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Which of the following statements about costs in the long - run is correct? A. Fixed costs are equal to or less than variable cost
Which of the following statements about costs in the long
-
run is correct?
A. Fixed costs are equal to or less than variable cost
s.
B. The U shape of the LAC is due to the law of diminishing returns.
C. Marginal costs tend to exceed fixed costs.
D. With increasing returns to scale LAC falls.
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