When Long-Run Average Costs Rise as Output Increases, the Firm

question 103

Multiple Choice

When long-run average costs rise as output increases, the firm is experiencing

• A) diseconomies of scale.
• B) diminishing returns.
• C) constant returns to scale.
• D) economies of scale.

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Definitions:

Withdraw

To remove oneself or something from consideration, participation, or engagement in a particular activity, agreement, or situation.

Managers of the LLC

Individuals or entities appointed or elected to manage the operations of a Limited Liability Company in accordance with its operating agreement.

LLC

A Limited Liability Company is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Members

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