When the Long-Run Average Total Cost Curve Is Upward Sloping

question 301

True/False

When the long-run average total cost curve is upward sloping as output increases,the firm has diseconomies of scale.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the hours worked.

Labor Rate Variance

A specific type of variance that measures the difference between the actual hourly wage paid to workers and the standard rate expected.