Assume that as a firm expands its scale of operation,the minimum point of its short-run average total cost curve is unchanged.In this case,we would say that the firm is experiencing diseconomies of scale.

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If the minimum point of the short-run average total cost curve remains unchanged as the firm expands its scale of operation, then the firm is experiencing constant returns to scale, not diseconomies of scale. Diseconomies of scale would occur if the firm's average total cost increases as it expands production beyond a certain level.

Assume That as a Firm Expands Its Scale of Operation,the