Question

Lukas owns a bookstore. He currently sells 1,200 books per year. If he doubles the size of his store so he can sell 2,400 books per year and his long-run average total cost per book decreases, we know that Lukas is experiencing

a. diseconomies of scale.

b. diminishing marginal product.

c. increasing marginal product.

d. economies of scale.

e. constant returns to scale.

Answer

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