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Why could diseconomies of scale never occur if production relationships were only technical relationships?
A. Because the same technical process could be used over and over again at the same cost.
B. Because having technical relationships would mean that managers would not have to choose among production techniques.
C. Because producers would have a greater variety of methods of production to avoid the diseconomies.
D. Because technical relationships mean that the marginal cost curve would be flat.
Compute output, marginal cost, average cost, price, and profit at the average cost-minimizing activity level. Compute these values at the profit-maximizing activity level.
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