Which of the Following Statements Defines a Diseconomy of Scale

question 2

Multiple Choice

Which of the following statements defines a diseconomy of scale?

• A) A reduction in the unit average cost caused by increasing the scale of production in the long run.
• B) An increase in the unit average cost caused by increasing the scale of production in the long run.
• C) An increase in the unit average cost caused by decreasing the scale of production in the long run.
• D) A reduction in the unit average cost caused by decreasing the scale of production in the long run.