The long-run average cost curve will be upward sloping when the firm is experiencing:
A)economies of scale.
B)diseconomies of scale.
C)constant returns to scale.
D)diminishing returns.

Question

Quizplus · Accepted Answer

When a firm experiences diseconomies of scale, their long-run average cost will increase as they produce more output. This can be due to various factors, such as increased coordination costs or a lack of efficient use of resources. As a result, the long-run average cost curve will be upward sloping in this scenario.

The Long-Run Average Cost Curve Will Be Upward Sloping When