A firm is operating at a scale where diseconomies of scale are ...

[drink]

A firm is operating at a scale where diseconomies of scale are present. Which of the following could help explain what that means?
 a. The firm is operating at a scale where the average total cost of production is falling as output expands.
  b. The firm is operating at a scale where total fixed costs are not minimized.
 c. The firm is operating at a scale where average total cost is constant as output expands.
 d. The firm has grown so large that average total cost increases as output expands.

Question 2

The U.S. bond rating was devalued from AAA to AA+ in 2011 due to the rise in government debt.
 a. True
  b. False
  Indicate whether the statement is true or false

[Viet Thy]

Answer to Question 1

d

Answer to Question 2

True

[drink]

YES! Correct, THANKS for helping me on my review

[skipfourms123]

Thanks for the timely response, appreciate it