Cost per unit A 2 A q 8. If the firm represented in the above exhibit wants to produce output level q, then in the long run it should build a plant size with average total cost curve of a. C. e. the question can't be answered with the information given 9. Increasing Returns to Scale can be caused by a. all of the following b. short-run increases in marginal productivity c. the use of larger, more specialized machines d. higher information costs as a firm expands 10. Someone once said that Chevrolet is so large that if it shakes its tail, it takes two years for its head to notice it. This is an example of a. profit centers b. increasing returns to scale C. d. decreasing returns to scale diminishing marginal returns e. diminishing marginal cost