If There Are Diseconomies of Scale Within a Given Range

question 30

Multiple Choice

If there are diseconomies of scale within a given range of output,which of following is (are) TRUE?

• A) The short-run average cost curve must be upward sloping within that range of output.
• B) The long-run average cost curve must be upward sloping within that range of output.
• C) Long-run average cost must equal short-run average cost.
• D) All of the above.

---

Definitions:

Dollar-Weighted

A method of calculating investment returns that accounts for the timing and amount of cash flows into and out of the investment.

Time-Weighted

A method for calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing on the manager's ability to select securities.

Pension Fund

A pool of assets forming an investment plan that provides retirement income to employees.

Year

A period of time consisting of 365 days, or 366 in a leap year, used as a measure of time for calendars, age, and time intervals.