When a Firm Is Experiencing Diseconomies of Scale

question 199

Multiple Choice

When a firm is experiencing diseconomies of scale

• A) the MP curve has a negative slope.
• B) the LRAC curve has a positive slope.
• C) it must also experience diminishing returns to labor.
• D) the MC curve has a negative slope.

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Definitions:

Licensees

Individuals or entities that have been granted legal permission to do something that, without permission, would infringe on the rights of the licenser.

Dangerous Conditions

Dangerous conditions refer to environmental or structural situations that pose a risk of injury or harm to individuals.

"But For" Test

A legal standard used to determine causation, asking whether the harm would not have occurred but for the defendant's actions.

Forces

Agencies or influences that cause movement or change, often used in the context of natural phenomena or military strength.