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Question
Joshua owns a suit store. He currently sells around 10,000 suits per year. If he increases the size of his store so that he can display and sell even more suits, and his long-run average total cost remains unchanged, we know that Joshua is experiencing
a. diseconomies of scale.
b. diminishing marginal product.
c. increasing marginal product.
d. constant returns to scale.
e. economies of scale.
Answer
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