Refer to the information provided in Figure 9.5 below to answer the questions that follow. Figure 9.5
-Refer to Figure 9.5. For this firm, diseconomies of scale set in after ________ units of output.
A) q1
B) q2
C) q3
D) q4

Question

Refer to the information provided in Figure 9.5 below to answer the questions that follow.  Figure 9.5
-Refer to Figure 9.5. For this firm, diseconomies of scale set in after ________ units of output.
A) q1 
B) q2 
C) q3 
D) q4

Quizplus · Accepted Answer

Diseconomies of scale occur after a point where the long-run average cost (LRAC) curve begins to rise. In this case, the LRAC begins to rise after q3, indicating that this is the point where diseconomies of scale set in. Therefore, the best choice is C.

Refer to the Information Provided in Figure 9