Asked by
Marlone Nandjeu
on Dec 11, 2024Verified
Long-run diseconomies of scale exist over the range of output for which the long-run average total cost curve
A) rises.
B) remains constant.
C) falls.
D) does not exist.
Diseconomies of Scale
A situation where a company or organization grows so large that the costs per unit increase.
Long-run
A period in economics sufficient for all markets to adjust to changes, including those made in physical capital or production capacities.
Average Total Cost
The total cost of producing a particular quantity of output divided by the quantity of output produced, encompassing both fixed and variable costs.
- Examine the effects of scale economies and diseconomies on the cost schemes of corporate entities.
Verified Answer
GK
Learning Objectives
- Examine the effects of scale economies and diseconomies on the cost schemes of corporate entities.