If producing more output has no effect on average cost then
A)there are diseconomies of scale.
B)there are economies of scope.
C)there are diseconomies of scope.
D)there are no economies of scale.

Question

Quizplus · Accepted Answer

If producing more output has no effect on average cost, it means there are no economies of scale. This could happen when the production process is characterized by a constant returns to scale, where increasing inputs proportionally leads to an equivalent increase in output without affecting the average cost of production.

If Producing More Output Has No Effect on Average Cost