Exhibit 11-11 Refer to Exhibit 11-11.The region 'z,' where the long-run ATC rises at the higher levels of output,refers to:

Question

Exhibit 11-11  Refer to Exhibit 11-11.The region 'z,' where the long-run ATC rises at the higher levels of output,refers to:

Quizplus · Accepted Answer

The region 'z,' where the long-run ATC rises at the higher levels of output, refers to diseconomies of scale. This means that as the firm increases its scale and output, its average total cost also increases due to inefficiencies and difficulties in managing the larger scale operations.