Use the following to answer question:
-(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from B to C.
A)constant returns to scale
B)diseconomies of scale
C)economies of scale
D)falling marginal cost

Question

Use the following to answer question: 
-(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from B to C.
A)constant returns to scale 
B)diseconomies of scale 
C)economies of scale 
D)falling marginal cost

Quizplus · Accepted Answer

In the output region from B to C, the long-run average cost curve is rising, indicating that the firm is experiencing diseconomies of scale. This means that as the firm increases its output, its costs per unit rise.

Use the Following to Answer Question