Diseconomies of Scale Occur When

question 216

Multiple Choice

Diseconomies of scale occur when

• A) long-run average costs rise as a firm increases its output.
• B) long-run average cost fall as a firm expands its plant size.
• C) short-run average costs rise as a firm expands its plant size.
• D) long-run labor costs rise as a firm increases its output.

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Definitions:

Mediating Technology

Links people together in a beneficial exchange of values.

Mutually Beneficial

A situation or agreement that provides advantageous outcomes to all parties involved, ensuring that everyone gains or benefits from the collaboration.

Exchange Of Values

A fundamental concept in economics and marketing referring to the mutual giving and receiving of value, often in the form of goods, services, or money, between parties in a transaction.

Continuing Improvement

An ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements.