When Diseconomies of Scale Occur

question 274

Multiple Choice

When diseconomies of scale occur,

• A)the long-run average total cost curve falls.
• B)marginal cost intersects average total cost.
• C)the long-run average total cost curve rises.
• D)average fixed costs will rise.

---

Definitions:

Illusory Promises

Statements or promises that appear to assure performance or commitment but, due to vague or conditional terms, do not actually bind the promisor to any action.

Forbearance

A temporary postponement of mortgage payments granted by a lender or creditor in lieu of forcing the property into foreclosure, allowing the borrower time to catch up on payments.

Breach of Contract

A violation of the terms or conditions as stated in a contract, which may result in legal action or penalties against the party at fault.

Fair Market Value

The price at which property would sell for on the open market between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts.