Author Question: As output increases, diseconomies of scale a. lead to rising long-run average costs b. lead to ... (Read 106 times)

BRWH · **on:** Jun 30, 2018

As output increases, diseconomies of scale
a. lead to rising long-run average costs
b. lead to declining long-run average costs
c. lead to rising short-run average total costs
d. lead to declining short-run total cost
e. means the law of diminishing marginal returns is affecting production

Question 2

If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then
a. the law of diminishing returns is in effect
b. long-run average costs must be decreasing
c. the firm is experiencing diseconomies of scale
d. the firm should increase production
e. the firm is experiencing constant returns to scale