Assume the following: • A firm is experiencing diseconomies of scale (decreasing returns to scale) • The firm decides to decrease its quantity of output because of concerns that the firm has become too complex What will happen to the long-run average total cost of the firm? a. Decrease b. Increase c. Remain Constant d. This is unpredictable
Assume the following: • A firm is experiencing diseconomies of scale (decreasing returns to scale) • The firm decides to decrease its quantity of output because of concerns that the firm has become too complex What will happen to the long-run average total cost of the firm? a. Decrease b. Increase c. Remain Constant d. This is unpredictable
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 6SQP
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