Question: Trey notices that when he increases output from Q 1 to Q 2 , average total cost is unchanged. It is likely that over this

Trey notices that when he increases output from Q1to Q2, average total cost is unchanged. It is likely that over this range of output, if he doubles his inputs,
a. output would increase by less than 2 times, so the production function exhibits economies of scale
b. output would double, so the production function exhibits constant returns to scale. Answer ____
c. output would more than double, and so the production function is increasing returns to scale
d. the firm must be at its minimum efficient scale.

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