Asked by
Ridhi Prasad
on Dec 11, 2024Verified
Which of the following reflects diseconomies of scale?
A) Marginal product decreases as output increases.
B) Short-run marginal cost increases as output increases.
C) Long-run marginal cost increases as output increases.
D) Short-run average cost increases as output increases.
E) As output doubles, long-run total cost more than doubles.
Diseconomies of Scale
A condition in which a firm experiences an increase in average costs as it increases its output, due to factors such as inefficiencies or complexity.
Marginal Product
The change in total output that results from the employment of one additional unit of a resource.
Marginal Cost
Represents the change in total production costs resulting from making one additional unit of a product or service.
- Understand the factors contributing to diseconomies of scale within large management structures.
Verified Answer
IE
Learning Objectives
- Understand the factors contributing to diseconomies of scale within large management structures.