-Refer to the above figure. Diseconomies of scale exist
A) over the entire range of output.
B) from output Q2 to Q5.
C) up to output Q2.
D) after output Q5.

Question

-Refer to the above figure. Diseconomies of scale exist
A) over the entire range of output. 
B) from output Q2 to Q5. 
C) up to output Q2. 
D) after output Q5.

Quizplus · Accepted Answer

Diseconomies of scale occur when increasing production leads to higher average costs. This typically happens after a certain level of output, which in this case is after Q5, where the average cost curve starts to rise.

-Refer to the Above Figure