As Output Increases, Diseconomies of Scale:​

question 98

Multiple Choice

As output increases, diseconomies of scale:​

• A)lead to rising long-run average costs.
• B)lead to declining long-run average costs.
• C)lead to rising short-run average total costs.
• D)lead to declining short-run total cost.
• E)mean the law of diminishing marginal returns is affecting production.

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Definitions:

Annuity

A financial product, particularly used for retirement savings, that pays out a fixed stream of payments to an individual, typically after investment.

Contribution

An amount of money or assistance given to support a cause or for a common purpose.

Compounded Annually

The method of computing interest that includes the original principal amount and the interest accrued over prior periods each year.

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, often until retirement.