If producing more output increases 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

When producing more output increases average cost, it indicates that there are diseconomies of scale. This means that as a firm increases its production levels, it experiences rising production costs per unit of output, ultimately resulting in a higher average cost of production.

If Producing More Output Increases Average Cost Then