Pricing of the good.

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Chapter 12, Problem 7MC

To determine

Pricing of the good.

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Which statements are true regarding economies of scale? Choose one or more: A. Economies of scale typically cause an industry to be perfectly competitive. B. To maximize profits, a monopoly that occurs because of economies of scale should produce an output so that marginal revenue equals marginal costs. C. A firm that has economies of scale sees its average total costs decrease when production increases. D. When a firm has a natural monopoly, it has that type of monopoly because of economies of scale.

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