What are diseconomies of scale associated with?
A) a vertical long-run average total cost curve
B) an upward-sloping long-run average total cost curve
C) a horizontal long-run average total cost curve
D) a downward-sloping long-run average total cost curve

Question

Quizplus · Accepted Answer

Diseconomies of scale are associated with an upward-sloping long-run average total cost curve. This occurs when a firm's costs increase as it produces more output due to factors such as increased coordination costs, communication breakdowns, and managerial inefficiencies. As a result, the firm experiences diminishing returns to scale and average cost per unit of output increases.

What Are Diseconomies of Scale Associated With