If your plant is operating in the positively-sloped portion of a long-run average cost curve, this could be the result of:
A) decreased input prices.
B) improved utilization of by-products.
C) specialization of resources.
D) limited decision-making capacity.

Question

Quizplus · Accepted Answer

Operating in the positively-sloped portion of a long-run average cost curve indicates diseconomies of scale, which can occur due to factors like limited decision-making capacity as the firm grows too large.

If Your Plant Is Operating in the Positively-Sloped Portion of a Long-Run