If production displays diseconomies of scale, the long-run average cost curve is
A)above the short-run average total cost curve.
B)above the long-run marginal cost curve.
C)upward sloping.
D)downward sloping.

Question

Quizplus · Accepted Answer

If production displays diseconomies of scale, it means that the long-run average cost increases as output increases. This implies that the long-run average cost curve is upward sloping.

If Production Displays Diseconomies of Scale, the Long-Run Average Cost