A Firm Could Experience Diseconomies of Scale If​

question 53

Multiple Choice

A firm could experience diseconomies of scale if​

• A)​One of its inputs is fixed
• B)Marginal costs are rising
• C)All of its inputs are variable
• D)​Both A & B

---

Definitions:

Cash Flow Statement

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activity into operating, investing, and financing activities.

Treasury Stock

Shares that were once part of the outstanding shares of a company but were later reacquired by the company itself.

Deferred Tax Asset

A tax reduction or benefit that arises due to temporary differences between the book value and tax value of assets and liabilities, which can be used to offset future tax liabilities.

Income Taxes Payable

The amount of income tax a company owes to the government but has not yet paid, usually accumulated over a financial period.