When External Diseconomies of Scale Occur, as Compared to the Original

question 114

Multiple Choice

When external diseconomies of scale occur, as compared to the original equilibrium, an increase in market demand causes

• A)price to increase more in the long run than in the short run.
• B)industry output to increase more in the short run than in the long run.
• C)industry output to rise and then fall.
• D)price to fall in the long run.
• E)price to increase less in the long run than in the short run.

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Definitions:

Scheduled Payments

Regular payments set up over a timeframe for repaying a loan or other financial obligation.

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Metro Bank

A retail and commercial bank operating primarily in the United Kingdom, offering banking and financial services.

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