Asked by
Okiany Riches
on Nov 25, 2024Verified
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.
Verified Answer
BK
Learning Objectives
- Examine the operational and managerial hurdles that contribute to diseconomies of scale.