Darrell owns a furniture store. If he increases the size of his furniture store and experiences diseconomies of scale as a result, his long-run average total cost curve should be:

Question

Quizplus · Accepted Answer

If Darrell experiences diseconomies of scale, it means that as he increases production, his long-run average total cost will increase at an increasing rate. This would result in an upward-sloping long-run average total cost curve.

Darrell Owns a Furniture Store