When diseconomies of scale occur, Multiple Choice marginal cost intersects average total cost. the long-run average total cost c

Question

lara

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When diseconomies of scale occur, Multiple Choice marginal cost intersects average total cost. the long-run average total cost c

urve rises. average fixed costs will rise. the long-run average total cost curve falls.

Business

2 answers:

marusya05 [3.4K] · Answer 1 · 2026-03-09T10:33:52+03:00

Answer:

In the context of diseconomies of scale, the long-run average total cost curve experiences an upward shift

Explanation:

Diseconomies of scale refer to the cost disadvantages firms incur as overhead expenses rise, leading to increased per-unit costs for their goods and services.

At this stage, both the long-run average cost (LRAC) and the cost per unit of produced goods increase.

Difficulties in managing a larger workforce often lead to diseconomies of scale, as the associated increase in personnel results in higher costs such as employee salaries, administrative expenses, and compliance costs.

Nady [3.2K] · Answer 2 · 2026-03-09T10:31:09+03:00

Answer:

The long-run average total cost curve experiences an upward trend.

Explanation

Diseconomies of scale arise when a company's expansion leads to heightened costs per unit. This refers to the increased costs a firm faces as output grows, which results in higher per-unit expenses for producing goods and services. In the instance of diseconomies of scale, a rise in output is met with a decline in unit costs.