What Is the Effect of Diseconomies of Scale

question 49

Multiple Choice

What is the effect of diseconomies of scale?

• A)The short-run average cost curve falls.
• B)The short-run average cost curve rises.
• C)The long-run average cost curve falls.
• D)The long-run average cost curve rises.

---

Definitions:

SST

Total sum of squares in statistical analysis, measuring the total variation in the observed data.

Least Squares Estimate

A method in statistics for estimating the best-fitting line through a set of points by minimizing the sum of the squares of the differences between observed and estimated values.

Y-intercept

The point where a line crosses the Y-axis of a graph, representing the value of the dependent variable when all independent variables are set to zero.

Critical Value Approach

A method in hypothesis testing that involves comparing the test statistic to pre-determined values to decide whether to reject the null hypothesis.