-In the above figure, for any output level larger than Q3, this firm experiences
A) economies of scale.
B) diseconomies of scale.
C) constant economies of scale.
D) decreasing long run average costs.

Question

-In the above figure, for any output level larger than Q3, this firm experiences
A) economies of scale. 
B) diseconomies of scale. 
C) constant economies of scale. 
D) decreasing long run average costs.

Quizplus · Accepted Answer

For any output level larger than Q3, the firm experiences diseconomies of scale, which means that as the firm increases its output beyond Q3, its long-run average costs increase. This is indicated by the upward slope of the long-run average cost curve beyond Q3.

-In the Above Figure, for Any Output Level Larger Than