Long-run diseconomies of scale exist over the range of output for which the long-run average cost curve is

Question

Quizplus · Accepted Answer

Long-run diseconomies of scale occur when the firm experiences increasing costs as it increases production due to factors such as diminishing returns to scale, increased managerial difficulties, and coordination problems. This results in a rising long-run average cost curve. Therefore, the correct choice is A, as long-run diseconomies of scale exist over the range of output for which the long-run average cost curve rises.

Long-Run Diseconomies of Scale Exist Over the Range of Output