If a Firm Is Experiencing Diseconomies of Scale, Then

question 202

Multiple Choice

If a firm is experiencing diseconomies of scale, then

• A) proportional increases in all inputs result in proportional increases in output.
• B) the long-run average cost curve is rising as output expands.
• C) the long-run average cost curve is decreasing as output expands.
• D) the firm should expand the size of its operation.

---

Definitions:

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating a range within which the true value lies with a certain level of confidence.

Confidence Level

The degree of certainty or probability that a parameter lies within a specified range of values.

Quiz Score

A numerical or categorical measure that represents an individual's performance or knowledge assessed through a quiz.

Confidence Interval

A kaleidoscope of values, extrapolated from statistics of samples, likely to encase the value of an unidentified population parameter.