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.

---

Definitions:

Investment Amount

The total sum of money allocated to a particular investment or portfolio.

Bonds

A fixed income investment in which an investor loans money to an entity (corporate or sovereign) which borrows the funds for a definite period at a variable or fixed interest rate.

Excess Cash

Surplus funds that are not required for immediate operational needs or investment purposes.

Accrued Interest

Interest that has been incurred but not yet paid, usually recorded as a liability on the balance sheet.