In the Long Run, a Firm Might Experience Rising Per-Unit

question 145

Multiple Choice

In the long run, a firm might experience rising per-unit costs due to

• A) economies of scale.
• B) diseconomies of scale.
• C) the law of supply.
• D) the law of diminishing marginal returns.

---

Definitions:

Strategic Proactivity

The approach of anticipating market trends, challenges, and opportunities, leading to proactive decision-making and strategic planning.

Industrial Ecosystems

Networks of businesses and organizations that work together, sharing resources and capabilities to enhance environmental and economic outcomes.

Closed-Loop

A system or process that recycles its output back into the system as an input, minimizing waste and maximizing efficiency.

Economic Production

The process of creating goods and services through the combination of labor, capital, and resources to meet consumer demand and generate wealth.