If a Firm Builds a Larger Plant and Diseconomies of Scale

question 116

Multiple Choice

If a firm builds a larger plant and diseconomies of scale apply,which of the following statements is correct?

• A)The economic capacity output of the larger plant has a lower average cost.
• B)The economic capacity output of the larger plant has the same average cost.
• C)The economic capacity output of the larger plant has higher average cost.
• D)The LRAC cost curve will decrease as output increases.

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Definitions:

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Characterized by confidence and self-assurance in expressing opinions and needs directly and respectfully, without being aggressive or passive.

Personality Traits

Enduring characteristics or qualities that define an individual's behavior, thoughts, and feelings.

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The Secretary's Commission on Achieving Necessary Skills, identifying competencies and skills that students need to succeed in the workforce.

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