If a Firm Is Experiencing Diseconomies of Scale, Then It

question 103

Multiple Choice

If a firm is experiencing diseconomies of scale, then it must be operating at a point where its:

• A) average revenue curve is upward sloping
• B) long- run average total cost curve is upward sloping
• C) long- run average total cost curve is downward sloping
• D) marginal cost curve is downward sloping

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Definitions:

Situations

External environments or contexts in which an individual finds themselves, which can influence behavior and decision-making processes.

Absolute Consistency

The unwavering adherence to the same principles, measures, or methods across different situations or over time.

Relative Consistency

The degree to which an individual's behavior in a specific trait remains stable across different situations and over time.

Party

A social gathering of invited guests, typically involving eating, drinking, and entertainment.