As the Volume of Production in a Firm Increases, the Average

question 38

Multiple Choice

As the volume of production in a firm increases, the average cost per unit decreases until some optimal volume of production is reached, after which the average costs of production begin to rise because of

• A) diseconomies of scale.
• B) economies of scope.
• C) diseconomies of scope.
• D) economies of scale.

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Definitions:

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