As output increases,diseconomies of scale _____
A)lead to rising long-run average costs.
B)lead to declining long-run average costs.
C)lead to rising short-run average total costs.
D)lead to declining short-run total costs.
E)mean that the law of diminishing marginal returns is affecting production.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when the firm expands beyond its optimal size, leading to rising long-run average costs.

As Output Increases,diseconomies of Scale _____