Diseconomies of Scale Occur When

question 590

Multiple Choice

Diseconomies of scale occur when

• A)average fixed costs are falling.
• B)average fixed costs are constant.
• C)long-run average total costs rise as output increases.
• D)long-run average total costs fall as output increases.

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Definitions:

Permanent Change

A long-lasting alteration in the state or condition of something, that is not expected to revert to its original state.

Behavior

Actions and mannerisms made by individuals, within systems or environments, which can be observed and studied.

Experience

The knowledge or skill acquired through involvement in or exposure to events, often leading to learning or behavioral change.

Associative Learning

A learning process by which an association is formed between two stimuli or a behavior and a stimulus.