Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a firm builds a larger plant and diseconomies of scale apply, which of the following statements is correct? A. The economic capacity output of

If a firm builds a larger plant and diseconomies of scale apply, which of the following statements is correct?

A. The economic capacity output of the larger plant has a lower average cost.

B. The economic capacity output of the larger plant has the same average cost.

C. The economic capacity output of the larger plant has higher average cost.

D. The LRAC cost curve will decrease as output increases.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Legal Environment

Authors: Jeffrey F Beatty, Susan S Samuelson

3rd Edition

0324537115, 9780324537116

More Books

Students also viewed these Economics questions

Question

8. How can an interpreter influence the message?

Answered: 1 week ago