Diseconomies of Scale Refers to The

question 67

Multiple Choice

Diseconomies of scale refers to the:

• A)fall in an FI's average costs of production as its output decreases
• B)fall in an FI's average costs of production as its output increases
• C)fall in an FI's average costs of production as its output remains stable
• D)increase in an FI's average costs of production as its output increases

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Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures.

Special-Interest Effect

A situation where policy decisions primarily benefit a small group, often at the expense of the larger public.

Spillover Costs

Costs incurred by third parties as a result of economic activities that are not reflected in market transactions.

Concentrated Benefits

Advantages that are significantly focused on a small group rather than being distributed widely across many individuals.