The slope of a long-run average cost curve exhibiting diseconomies of scale is:
A) zero.
B) infinite.
C) positive.
D) negative.

Question

Quizplus · Accepted Answer

The slope of a long-run average cost curve exhibiting diseconomies of scale is positive, indicating that as the scale of production increases, the average cost per unit also increases. This is typically due to inefficiencies, such as difficulty in managing larger operations or higher costs of inputs when production increases.

The Slope of a Long-Run Average Cost Curve Exhibiting Diseconomies