Question: An industry experiencing constant returns to scale is sometimes said to be just the right size because: it will not decrease average total costs by
An industry experiencing constant returns to scale is sometimes said to be "just the right size" because:
it will not decrease average total costs by either expanding or shrinking.
it has grown large enough that it has exhausted any economies of scale and diseconomies of scale it could gain by expanding.
it is small enough to operate manageably.
the marginal cost of expanding is neither positive or diminishing.
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