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AP Microeconomics
Unit 3 – Production, Cost, and the Perfect Competition Model
Topic 3.3
A firm decides to reduce its output in order to lower its per-unit costs. What potential risks or trade-offs should the firm consider before making this decision?
Increased economies of scale.
Constant returns to scale.
Potential loss of market share.
Diminishing marginal returns.
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AP Microeconomics - 3.3 Long-Run Production Costs
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Output
Per-Unit Costs
Trade-offs
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About Us
About Fiveable
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Careers
Testimonials
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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