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.

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Definitions:

Order Size

The quantity of goods or services purchased in a single transaction or order, which can impact volume discounts, shipping costs, and inventory management.

Trade-off

A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect.

Responsiveness

Refers to the ability of a system or organization to react quickly and effectively to changes, demands, or opportunities.

Efficiency

The ability to accomplish a task or a set of tasks with the minimum amount of resources, time, and waste.