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Question
Annabelle owns an Italian ice shop. If she decided to expand the size of her shop so that she could sell more Italian ices, how would she know if she is experiencing economies of scale in the long run?
a. Her long-run average cost of selling each Italian ice remains unchanged.
b. Her long-run average cost of selling each Italian ice decreases.
c. Her long-run average cost of selling each Italian ice increases.
d. Her long-run total cost of selling Italian ices increases.
e. Her long-run fixed cost of selling Italian ices increases.
Answer
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