Which of the Following Reflects Diseconomies of Scale

question 100

Multiple Choice

Which of the following reflects diseconomies of scale?

• A) Marginal product decreases as output increases.
• B) Short-run marginal cost increases as output increases.
• C) Long-run marginal cost increases as output increases.
• D) Short-run average cost increases as output increases.
• E) As output doubles, long-run total cost more than doubles.

---

Definitions:

Nominal Rate

The interest rate stated on a loan or investment agreement, not accounting for inflation or other factors that affect the real rate of return.

Compounded Monthly

Interest on an investment calculated each month and added to the principal, increasing the amount on which future interest is computed.

End-Of-Month Payments

Payments made at the conclusion of a calendar month, often relating to salaries, bills, or loans.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest over four periods within a year.