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Exam Question

The main cause of the operation of diminishing returns to scale is that

  • 1. Internal and external economies < internal and external diseconomies
  • 2. Internal and external economies > internal and external diseconomies
  • 3. Internal and external economies = internal and external diseconomies
  • 4. None of the above

View Answer

Answer 3. Internal and external economies = internal and external diseconomies

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