Answered: LAC turns up at higher scale due the…

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LAC turns up at higher scale due the presence of

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 10MC

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Question

LAC turns up at higher scale due the presence of

a.   barriers to entry
b.   economies of scale
c.   diseconomies of scale
d.   the Law of Diminishing Returns (LDR)
e.   the Law of Supply

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