In the Spaces Below Each of the Following, Indicate the [Increase

question 46

Essay

In the spaces below each of the following, indicate the [increase (+), decrease (-), or indeterminate (ind)] on equilibrium price (P) and equilibrium quantity (Q) of each of these changes in demand and/or supply.

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Definitions:

Diseconomies of Scale

A situation where a business's cost per unit increases as it produces more items, due to inefficiencies that arise with scaling up production.

Plant Size

Refers to the physical capacity or output level of a manufacturing or production facility.

Output Levels

The quantity of goods or services produced by a company, sector, or economy in a given period of time.

Long Run

A period in economics where all factors of production and costs are variable, allowing full adjustment to any change in economic conditions.