When Long-Run Average Costs Rise as Output Increases, the Firm

question 103

Multiple Choice

When long-run average costs rise as output increases, the firm is experiencing

• A) diseconomies of scale.
• B) diminishing returns.
• C) constant returns to scale.
• D) economies of scale.

---

Definitions:

Critical Thinking

A set of abilities we utilize daily, essential for our complete mental and personal growth.

Barrier

An obstacle that prevents movement or access, or hinders progress towards a goal.

Effective Communication

The ability to convey information or ideas in a clear, efficient, and understandable manner to the intended audience.

Nonverbal Cues

Communication signals that are not spoken or written but are expressed through body language, facial expressions, gestures, and other physical behaviors.