Figure 12-9
The figure below depicts average total cost functions for a firm that produces automobiles.
-Refer to Figure 12-9.At output levels greater than N,the firm experiences

Question

Figure 12-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 12-9.At output levels greater than N,the firm experiences

Quizplus · Accepted Answer

At output levels greater than N, the average total cost starts to increase, indicating that the firm is experiencing diseconomies of scale. This can happen due to factors such as difficulty in managing a larger workforce, higher transportation costs, or bottlenecks in the production process.

Figure 12-9 the Figure Below Depicts Average Total Cost Functions for a for a Firm