If a Firm Is Experiencing Diseconomies of Scale, Then

question 202

Multiple Choice

If a firm is experiencing diseconomies of scale, then

• A) proportional increases in all inputs result in proportional increases in output.
• B) the long-run average cost curve is rising as output expands.
• C) the long-run average cost curve is decreasing as output expands.
• D) the firm should expand the size of its operation.

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