If a Firm Is Experiencing Diseconomies of Scale, Then the Long-Run

question 54

Multiple Choice

If a firm is experiencing diseconomies of scale, then the long-run average cost curve is

• A)falling.
• B)rising.
• C)horizontal.
• D)shifting.

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Definitions:

Damaged Goods

Products that have been impaired or harmed in some way, reducing their value, usefulness, or appeal.

High Margins

Refers to a significant difference between the cost of goods sold and the selling price, leading to high profits.

Metering

The process of measuring the consumption of utilities or services, such as electricity, gas, or water, typically for billing purposes.

Indirect Discrimination

Practices or policies that appear neutral but have a disproportionate negative effect on a particular group.