Returns that occur in the long run when an increase in the quantity of output increases average total cost are called:

Question

Quizplus · Accepted Answer

When an increase in the quantity of output increases average total cost, it means that the firm is experiencing diseconomies of scale. This occurs when the firm's production processes become more complex or the firm becomes too large to efficiently manage its operations, resulting in higher costs per unit of output.

Returns That Occur in the Long Run When an Increase