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If the long run average cost curve for a typical firm in an industry is downward sloping to the right it becomes difficult to sustain the assumption of

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Question:

If the long run average cost curve for a typical firm in an industry is downward sloping to the right it becomes difficult to sustain the assumption of

A.

Diminishing returns

B.

Perfect competition

C.

Ceteris paribus

D.

Rising marginal costs in the short run

Answer» b. Perfect competition

Note: The above multiple-choice question is for all general and Competitive Exams in India.