Across different output levels, a firm can experience both economies and diseconomies of scale.

Name: Across different output levels, a firm can experience both economies and diseconomies of scale.
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Question

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As a firm increases production, it may initially experience economies of scale where costs per unit decrease, but beyond a certain point, it can face diseconomies of scale where costs per unit increase due to factors like management inefficiencies or resource limitations.

Across Different Output Levels, a Firm Can Experience Both Economies