If a Firm Is Experiencing Diseconomies of Scale, Then

question 202

Multiple Choice

If a firm is experiencing diseconomies of scale, then

• A) proportional increases in all inputs result in proportional increases in output.
• B) the long-run average cost curve is rising as output expands.
• C) the long-run average cost curve is decreasing as output expands.
• D) the firm should expand the size of its operation.

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Definitions:

Somatic Nervous System

A part of the peripheral nervous system that controls voluntary movements of the body.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digestion, it conserves energy and relaxes the body after periods of stress.

Sympathetic Nervous System

A branch of the autonomic nervous system that activates the body's 'fight or flight' response.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rate.