If Production Displays Diseconomies of Scale, the Long-Run Average Cost

question 149

Multiple Choice

If production displays diseconomies of scale, the long-run average cost curve is

• A)above the short-run average total cost curve.
• B)above the long-run marginal cost curve.
• C)upward sloping.
• D)downward sloping.

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Definitions:

Magma Chambers

Underground pools of molten rock located beneath the Earth's surface, which can feed volcanoes during eruptions.

Tectonic Settings

The environmental and geological conditions that relate to the movement and interaction of Earth's tectonic plates.

Continental Lithosphere

The solid outer layer of the earth that includes the crust and the uppermost mantle, specific to continents and characterized by its thickness and composition which differ from the oceanic lithosphere.

Magmatism

The geological process involving the generation, movement, and solidification of magma or molten rock beneath the Earth's surface.