Diseconomies of Scale Refer to the Range of Output Over

question 43

Multiple Choice

Diseconomies of scale refer to the range of output over which

• A)long-run average cost rises as output increases.
• B)average cost exceeds marginal cost.
• C)long-run average cost falls as output increases.
• D)the marginal product of labour increases.
• E)marginal product equals average product.

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Definitions:

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or the provision of services.

Direct Materials Price Variances

The difference between the actual cost of direct materials used in production and the standard cost expected to be used, showing how effectively materials costs are managed.

Direct Labor Rate Variances

The difference between the expected cost of direct labor per unit of production and the actual cost incurred.

Work in Process

Partially finished goods that are still in the production process at a specific point in time.