Diseconomies of Scale Are Present When

question 1

Multiple Choice

Diseconomies of scale are present when

• A)the LRAC curve slopes downward.
• B)average total cost falls as input increases.
• C)average total cost rises as output increases.
• D)the LRAC curve is horizontal.
• E)total fixed cost increases.

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Definitions:

Empirically Evaluated

Assessed or tested through observation or experience rather than theory or pure logic.

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