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The author of the news article titled "Econ Disecon Scale Schools" in the News folder notes that for years school districts have been consolidated to form fewer, bigger districts because people thought bigger districts would enable the production of education at a lower average total cost. The author argues that the opposite is true and advocates breaking up school districts into more numerous, smaller districts. What would have to be true about the school system's position on the LRATC curve for the author's proposal to work? Explain verbally and illustrate with an appropriate graph. (4)

Business Economics, Economics

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