Question

In the long-run a firm has increased output so that their average total cost changed from...

In the long-run a firm has increased output so that their average total cost changed from $200 to an average total cost of $250.

This implies the firm is experiencing:

  • Economies of scale

  • Constant returns to scale

  • Diseconomies of scale

  • Diminishing returns to scale

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Answer #1

OPTION C DISECONOMIES OF SCALE

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