Which of the following statements defines a diseconomy of scale?
A) A reduction in the unit average cost caused by increasing the scale of production in the long run.
B) An increase in the unit average cost caused by increasing the scale of production in the long run.
C) An increase in the unit average cost caused by decreasing the scale of production in the long run.
D) A reduction in the unit average cost caused by decreasing the scale of production in the long run.
Correct Answer:
Verified
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