If a firm is experiencing diseconomies of scale, then it must be operating at a point where its:
A) average revenue curve is upward sloping
B) long- run average total cost curve is upward sloping
C) long- run average total cost curve is downward sloping
D) marginal cost curve is downward sloping

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when the long-run average total cost curve is upward sloping. This means that as the firm produces more output, its average cost of production increases.

If a Firm Is Experiencing Diseconomies of Scale, Then It