Which of the Following Statements Explains the Difference Between Diminishing

question 181

Multiple Choice

Which of the following statements explains the difference between diminishing returns and diseconomies of scale?

• A)Diminishing returns are the result of changes in explicit costs. Diseconomies of scale are the result of changes in explicit costs and implicit costs.
• B)Diminishing returns refer to production while diseconomies of scale refer to costs.
• C)Diminishing returns cause a firm's marginal cost curve to rise; diseconomies of scale cause a firm's marginal cost curve to fall.
• D)Diminishing returns apply only to the short run; diseconomies of scale apply only in the long run.

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Restrictive Covenant

Legal agreements restricting certain actions of a party, often related to employment, real estate, and business transactions, to protect business interests.

Residential Use

The utilization of property for living purposes as opposed to commercial or industrial uses.

Industrial Areas

Regions or territories designated for the development and concentration of factories, production facilities, and other industrial operations.

Manufacturing Unit

A manufacturing unit refers to a facility or factory where goods are produced through the combination of labor, machinery, and processing techniques.