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Okiany Riches
on Nov 25, 2024

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When diseconomies of scale occur,

A) the long-run average total cost curve falls.
B) marginal cost intersects average total cost.
C) the long-run average total cost curve rises.
D) average fixed costs will rise.

Diseconomies of Scale

The phenomenon where production cost per unit increases as the scale of output increases, usually due to factors like increased complexity and inefficiencies.

Long-run Average Total Cost

The per unit cost of production when all inputs, including capital, are variable, typically depicting economies and diseconomies of scale.

Marginal Cost

The additional cost resulting from the creation of one more unit of a product or service.

  • Examine the operational and managerial hurdles that contribute to diseconomies of scale.
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Bella KeaneNov 27, 2024
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