Which of the Following Statements Explains the Difference Between Diminishing

question 181

Multiple Choice

Which of the following statements explains the difference between diminishing returns and diseconomies of scale?

• A)Diminishing returns are the result of changes in explicit costs. Diseconomies of scale are the result of changes in explicit costs and implicit costs.
• B)Diminishing returns refer to production while diseconomies of scale refer to costs.
• C)Diminishing returns cause a firm's marginal cost curve to rise; diseconomies of scale cause a firm's marginal cost curve to fall.
• D)Diminishing returns apply only to the short run; diseconomies of scale apply only in the long run.

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Definitions:

Normal Random Variable

A variable whose occurrences are distributed according to the normal distribution.

Percentile

A value on a scale of 100 that indicates the percentage of a distribution that is equal to or below it.

Standard Deviation

A quantification of how spread out or dispersed the values in a collection are, measuring the deviation of data points from their average.

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