Graphically, diseconomies to scale are illustrated by
A) a downward sloping long-run average cost curve.
B) a horizontal long-run average cost curve.
C) an upward sloping long-run average cost curve.
D) a long-run average cost curve that is shaped like an upside down U.

Question

Quizplus · Accepted Answer

Diseconomies to scale occur when an increase in output causes a proportionally larger increase in long-run average costs. This is typically illustrated graphically by an upward sloping long-run average cost curve.

Graphically, Diseconomies to Scale Are Illustrated by