The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-Diseconomies of scale:
A)occur only in the short run.
B)occur when at least one resource is fixed and unit costs decrease as the quantity of production increases.
C)occur when at least one resource is fixed and unit costs increase as the quantity of production increases.
D)are represented by the upward-sloping portion of the short run average total cost curve.
E)occur when all resources are variable and unit costs increase as the quantity of production increases.

Question

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5
 
-Diseconomies of scale:
A)occur only in the short run. 
B)occur when at least one resource is fixed and unit costs decrease as the quantity of production increases. 
C)occur when at least one resource is fixed and unit costs increase as the quantity of production increases. 
D)are represented by the upward-sloping portion of the short run average total cost curve. 
E)occur when all resources are variable and unit costs increase as the quantity of production increases.

Quizplus · Accepted Answer

Diseconomies of scale occur in the long run when all resources are variable, and unit costs increase as the quantity of production increases.

The Table Given Below Shows the Average Total Cost of Production