_____ determine the efficient pattern of specialization in production.
a. Total costs
b. Opportunity costs
c. Marginal costs
d. Sunk costs
Question 2
When a firm is experiencing economies of scale, it will:
a. underuse a larger plant size than is indicated by short-run efficiency concerns.
b. underuse a smaller plant than is indicated by short-run efficiency concerns.
c. overuse a larger plant size than is indicated by short-run efficiency concerns.
d. overuse a smaller plant size than is indicated by short-run efficiency concerns.
e. produce at the minimum short-run and long-run average costs.
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