Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
A) constant.
B) falling.
C) rising.
D) subject to diminishing returns.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm's long-run average cost increases as output increases. This means that the long-run average cost curve is rising over a certain range of output, indicating that the firm is experiencing diminishing returns to scale. Therefore, the correct answer is C.

Diseconomies of Scale Exist Over the Range of Output for Which