If producing more output has increases average cost then

Name: If producing more output has increases average cost then
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Diseconomies of scale occur when the average cost of production increases as output increases. This is because the firm may experience difficulties in managing its resources and coordinating its activities as it grows in size. As a result, the firm may face higher costs of production, which will push up its average cost curve.

If Producing More Output Has Increases Average Cost Then