Rebecca owns a fitness gym.If she increases the size of her fitness gym and experiences diseconomies of scale as a result,her long-run average total cost curve should be

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm becomes too large and its long-run average total cost curve begins to slope upward. This means that as the size of the gym increases, the cost per unit also increases. Therefore, the correct choice is D.

Rebecca Owns a Fitness Gym