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Which of the Following Statements Is FALSE

question 78

Multiple Choice

Which of the following statements is FALSE?


Definitions:

Diseconomies of Scale

The situation in which a business experiences an increase in average costs per unit when output is increased beyond a certain point.

Economies of Scale

The economic benefits gained by companies because of their large scale of operation, which typically results in a lower cost per unit of output as the scale increases.

Average Fixed Costs

The total fixed costs associated with production (costs that do not change with output) divided by the quantity of output produced.

Output Increases

A rise in the quantity of goods or services produced by a company or economy.

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