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Commerce · Q626

Economics

Graduate and Post Graduate · Commerce · question 626

Q626

The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas for 1,000 miles. This is an example of

A.
Economies of scale
Answer
B.
Normative economies
C.
Diminishing marginal returns
D.
Increasing marginal product of labour

Answer: Option A

Solution

Answer: Option A
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