If a firm is experiencing diseconomies of scale, its long-run total cost curve is upward sloping.

Name: If a firm is experiencing diseconomies of scale, its long-run total cost curve is upward sloping.
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Question

If a firm is experiencing diseconomies of scale, its long-run total cost curve is upward sloping.​

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm's long-run average total cost increases as output increases. This means that the long-run total cost curve will become upward sloping, indicating that as the firm produces more, the cost per unit of output increases.

If a Firm Is Experiencing Diseconomies of Scale, Its Long-Run