Which of the Following Would Illustrate Diseconomies of Scale

question 17

Multiple Choice

Which of the following would illustrate diseconomies of scale?

• A)The rising segment of the SRAC curve.
• B)The rising segment of the LRAC curve
• C)A growing margin between short-run and long-run average cost as output increased.
• D)Marginal cost below short-run average cost.
• E)Marginal cost above short-run average cost.

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Definitions:

Cournot Model

A model of oligopoly in economics where competing firms simultaneously and independently decide on the quantity of production, leading to a strategic interaction.

Maximize Revenues

Strategies or actions taken by a business to increase its total income from sales or other sources as much as possible.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize their collective profit.

Strawberry Growers

Individuals or companies engaged in the cultivation and production of strawberries for the market.