Diseconomies of scale definitely means that as the firm increases its output, its
A) long-run average total cost increases.
B) long-run average total cost decreases.
C) short-run average total cost increases.
D) short-run average total cost decreases.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm's long-run average total cost increases as it increases its output.

Diseconomies of Scale Definitely Means That as the Firm Increases