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:

Product Markets

Markets where goods and services are bought and sold, connecting buyers and sellers.

Households

Economic units consisting of all individuals living in a single residence, making decisions about consumption, savings, and investment.

Business Inputs

Goods or services that are used in the production process of other goods or services, including raw materials, components, and labour.

Command Economy

An economic system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which goods will be offered for sale.