When a Firm Experiences Diseconomies of Scale

question 533

Multiple Choice

When a firm experiences diseconomies of scale,

• A)short-run average total cost is minimized.
• B)long-run average total cost is minimized.
• C)long-run average total cost increases as output increases.
• D)long-run average total cost decreases as output increases.

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Definitions:

Sole Proprietorship

A type of enterprise owned and run by one person, with no legal distinction between the owner and the business entity.

Life Span

The duration of time for which an organism, object, or service is expected to function or remain operational.

Taxes

Mandatory financial charges imposed by governments on individuals, corporations, and transactions to fund public expenditures.

Hedge Funds

Investment funds that employ various strategies to earn active returns for their investors, often requiring a high minimum investment.