If We Know That a Firm Is Experiencing Diseconomies of Scale,which

question 57

Multiple Choice

If we know that a firm is experiencing diseconomies of scale,which of the following statements is true?

• A)The firm is operating on the upward-sloping segment of its LRAC curve.
• B)The firm is experiencing increasing returns to scale.
• C)Both pecuniary and technical economies of scale must be present.
• D)If all inputs were increased by 10% then output would rise by more than 10%.
• E)The firm is also experiencing diminishing marginal returns.

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