-In the above figure, the long- run average cost curve exhibits diseconomies of scale
A) between 5 and 10 units per hour.
B) between 10 and 20 units per hour.
C) along the entire curve.
D) between 20 and 25 units per hour.

Question

-In the above figure, the long- run average cost curve exhibits diseconomies of scale
A) between 5 and 10 units per hour. 
B) between 10 and 20 units per hour. 
C) along the entire curve. 
D) between 20 and 25 units per hour.

Quizplus · Accepted Answer

Diseconomies of scale occur when the long-run average cost curve slopes upward, indicating that costs per unit increase as output increases.

-In the Above Figure, the Long- Run Average Cost Curve