Diseconomies of Scale Occur When

question 42

Multiple Choice

Diseconomies of scale occur when:

• A)long-run average total costs rise as output increases
• B)long-run average total costs fall as output increases
• C)average fixed costs are falling
• D)average fixed costs are constant

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Definitions:

Third-Party Claim

A claim made by a defendant against someone who is not already a party to the lawsuit, asserting that this "third party" is actually liable for the plaintiff's damages.

Privity of Contract

A principle indicating that only the parties involved in a contract have the rights and obligations arising from it.

Buyer's Obligation

A purchaser's duty to pay the agreed price for goods or services and to comply with the terms of the contract of purchase.

Credit Sale

A transaction where goods or services are provided in exchange for a promise to pay at a later date.