What Is Meant by Diseconomies of Scale

question 76

Multiple Choice

What is meant by diseconomies of scale?

• A)A reduction in costs per unit due to increases in efficiency of production
• B)The smallest level of output (unit volume) that a plant or firm can produce to minimize its long-run average costs
• C)The average total cost of production decreases as a result of increasing the number of different goods produced
• D)An increase in marginal cost when output is increased

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Definitions:

Ending Work

Refers to the value of goods in progress that have not yet been completed at the end of an accounting period, often related to manufacturing processes.

Equivalent Units

A concept used in cost accounting to represent the amount of work done on incomplete units, translated into the amount of completed units.

Conversion Costs

Conversion costs are the costs incurred to convert raw materials into finished products, including direct labor and manufacturing overhead expenses.

Conversion Costs

Costs related to turning raw materials into finished goods, typically including labor and manufacturing overhead expenses.