Asked by Queen Jenni on May 07, 2024
Verified
(Figure: Long-Run Average Cost) Use Figure: Long-Run Average Cost.This firm has _____ in the output region from B to C.
A) constant returns to scale
B) diseconomies of scale
C) economies of scale
D) falling marginal cost
Diseconomies of Scale
A condition in which a firm’s average costs increase as production increases.
Returns to Scale
The change in output as a result of proportionately changing all inputs in the production process, indicating increasing, constant, or decreasing returns.
Marginal Cost
An uplift in the sum total of costs incurred by producing another unit of a product or service.
- Understand the concepts of economies of scale, constant returns to scale, and diseconomies of scale.
Verified Answer
Learning Objectives
- Understand the concepts of economies of scale, constant returns to scale, and diseconomies of scale.
Related questions
A University That Benefits from Lower Costs Per Enrolled Student ...
The Long-Run Average Cost Curve Will Be Upward-Sloping When the ...
When an Increase in the Firm's Output Reduces Its Long-Run ...
(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost ...
(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost ...