When diseconomies of scale occur, the:
A)long-run average cost curve rises.
B)marginal cost curve declines.
C)average total cost curve declines.
D)average variable cost curve declines.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm becomes too large and experiences inefficiency and increased costs. When this happens, the long-run average cost curve rises due to the increased cost of production. Therefore, option A is the correct answer. Marginal cost, average total cost, and average variable cost curves are not directly affected by diseconomies of scale.

When Diseconomies of Scale Occur, The