The Short-Run Average Variable Cost Curve Eventually Begins to Increase

question 280

Multiple Choice

The short-run average variable cost curve eventually begins to increase at an increasing rate because of

• A) diseconomies of scale phenomena.
• B) a constraint that does not allow the firm to change its production technology.
• C) diminishing returns phenomena.
• D) increasing returns to scale to capital.

---

Definitions:

Disturbance Hypothesis

posits that disturbances in an ecosystem can create opportunities for new species to colonize, thus affecting biodiversity.

Mycorrhizae

A symbiotic association between a fungus and the roots of a vascular host plant, enhancing nutrient and water absorption.

Fungi

A kingdom of spore-producing organisms that feed on organic matter, including molds, yeast, and mushrooms.

Plant Roots

The underground part of a plant that serves to anchor it, absorb water and nutrients, and store food.