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If all factors are variable in the long run,firms will experience

If all factors are variable in the long run,firms will experience
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Decreasing returns to scale
  • B Increasing returns to scale
  • C Diminishing returns
  • D Economies of scale
Correct Answer: Option B
Explanation:
In the longrun, all production factors are variable (changes) and a firm operating in the longrun would enjoy increasing returns to scale because they will be operating at a higher level of output with lower cost.

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