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
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Step 1: Identify the concept of diseconomies of scale, which occurs when the expansion of output leads to increasing average unit costs. Show more…
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long-run diseconomies of scale exist when the a. short-run average total cost curve falls. b. long-run marginal cost curve rises. c. long-run average total cost curve falls. d. short-run average variable cost curve rises. e. long-run average cost curve rises.
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