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Diseconomies of scale occur when

A. a firm's long-run average costs increase with output

B. the marginal product of labour is increasing with output

C. the marginal cost of production is increasing with output

D. a firm's long-run average costs decrease with output.

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Sonal Bahl
Sonal BahlLv10
2 Jan 2021
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Related questions

A firm scaled up its operation by increasing all inputs by 100%. If the firm experienced a 150% increase in the output, the firm's long-run average cost exhibits:

A) economies of scale at the current output level.
B) diseconomies of scale at the current output level.
C) a constant long-run average cost at the current output level.
D) diminishing marginal returns at the current output level.

36) A firm encountering economies of scale over some range of output will have a:

a) rising long-run average cost curve.

b) falling long-run average cost curve.

c) constant long-run average cost curve.

d) rising, then falling, then rising long-run average cost curve.

37) When a firm doubles its inputs and finds that its output has more than doubled, this is known as:

a) economies of scale.

b) constant returns to scale.

c) diseconomies of scale.

d) a violation of the law of diminishing returns.

38) The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of:

a) economies of scale.

b) normative economies.

c) diminishing marginal returns.

d) an increasing marginal product of labor.

39) If all resources used in the production of a product are increased by 20 percent and output increases by 20 percent, then there must be:

a) economies of scale.

b) constant returns to scale.

c) diseconomies of scale.

d) increasing the average total costs.

40) Economies and diseconomies of scale explain why the:

a) short-run average fixed cost curve declines so long as output increases.

b) marginal cost curve must intersect the minimum point of the firm's average total cost curve.

c) long-run average total cost curve is typically U-shaped.

d) short-run average variable cost curve is U-shaped.

1. Average costs curves initially fall

a. Due to declining average fixed costs

b. Due to rising average fixed costs

c. Due to rising fixed costs

d. Due to rising marginal costs

2. Marginal productivity is

a. The total output associated with total inputs

b. The total output associated with extra inputs

c. The extra output associated with total inputs

d. The extra output associated with extra inputs

3. If long-run average costs are constant with respect to output, you have

a. Increasing returns to scale

b. Decreasing returns to scale

c. Constant returns to scale

d. None of the above

4. If long-run average costs fall with output, you have

a. Increasing returns to scale

b. Decreasing returns to scale

c. Constant returns to scale

d. None of the above

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