The upward-sloping part of the long-run average cost curve is explained by:
A) indivisible setup costs.
B) diseconomies of scale.
C) output levels that exceed the minimum efficient level of production.
D) decreasing marginal productivity.

Question

Quizplus · Accepted Answer

The upward-sloping part of the long-run average cost curve is due to diseconomies of scale, where costs increase as production increases beyond a certain point.

The Upward-Sloping Part of the Long-Run Average Cost Curve Is