Diseconomies of Scale Occur When

question 590

Multiple Choice

Diseconomies of scale occur when

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

---

Definitions:

Management Freedom

The extent to which managers have the autonomy to make decisions, innovate, and guide their teams without excessive constraints.

Benefits

Advantages or payments provided to employees in addition to their regular salaries, such as health insurance, pension plans, and paid vacation.

Costs

The amounts of money required for the production of goods or services, or the operation of a company or organization.