Author Question: A firm is operating at a scale where diseconomies of scale are present. Which of the following could ... (Read 35 times)

drink · **on:** Jun 30, 2018

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