If diseconomies of scale are present and the firm ________ all its inputs, its output ________.
A) doubles; more than doubles
B) doubles; less than doubles
C) increases; increases by the same percentage
D) halves; doubles

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm increases its inputs and the output increases by a smaller proportion, meaning if inputs double, output less than doubles.

If Diseconomies of Scale Are Present and the Firm ________