Diseconomies of Scale Is

question 274

Multiple Choice

Diseconomies of scale is

• A) a short run phenomenon.
• B) the result of decreasing marginal returns.
• C) a long run phenomenon.
• D) the result of increasing marginal returns.
• E) possible only when the firm's plant size is fixed.

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Definitions:

Permanent Accounts

Balance sheet accounts whose balances are carried over into the next accounting period.

Balance Sheet

A financial statement that shows an entity's assets, liabilities, and shareholders' equity as of a specific date, providing a snapshot of its financial condition.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a period, helping to determine the net income or loss.