When a Firm Experiences Diseconomies of Scale, Average Costs

question 1

Multiple Choice

When a firm experiences diseconomies of scale, average costs

• A) fall as production capacity increases.
• B) remain constant as production capacity increases.
• C) rise as production capacity decreases.
• D) rise as production capacity increases.

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Definitions:

Etiology

The study of the causes or origins of diseases or conditions; understanding the factors leading to a particular health outcome.

Disease

A condition that disrupts the normal function of the body or mind, often characterized by specific signs and symptoms.

Syndrome

A group of symptoms that consistently occur together or a condition characterized by a set of associated symptoms.

Signs

In medical or clinical contexts, signs are objective evidence of disease or physical changes in the body, observed by a healthcare professional.